Private bank clients cushion SGD bonds slide

BONDS have fallen out of favour and yet investors seem to be hanging on. The reasons for falling bond prices are still the same as the past six months: rising interest rates, higher inflation and monetary-tightening programmes, as well as increased anxiety from a myriad other factors.

The Markit SGD corporates total-return index is back to last August levels. Another indicator, the Singapore Fixed Income Index is down 1.80 per cent, year to date.

Volume in the Singapore dollar bond market has fallen 38 per cent with S$8 billion raised, according to Bloomberg.