Local bonds surge as interest rates fall sharply

Singapore

LOCAL bond prices are hitting new highs as interest rates fall sharply.

In particular, the three-month swap offer rate used on commercial loans continued to plunge, down to 0.90 per cent on Tuesday; it's now almost 50 per cent down from the 1.76 per cent high on Jan 13. The three-month Sibor or Singapore interbank offered rate, used to price home loans, fell slower - to 1.17 per cent on Wednesday against this year's high of 1.125 per cent on Jan 19.