THE spectre of slowing global economic growth returned to haunt markets on Thursday, as slides in developed markets' sovereign bond yields continued to stoke recession fears.

The Singapore market experienced a near repeat of the previous day's performance, with the Straits Times Index erasing nearly all intraday gains to close just 5.19 points or 0.16 per cent higher at 3,203.58.

"The rapid and persistent decline in bond yields is unnerving investors about the economic outlook," Jasper Lawler, head of research at London Capital Group, wrote in an afternoon note.