10-year SGS yield falls below 2%

Singapore

THE yield on the 10-year Singapore Government Securities (SGS) has plunged below 2 per cent as it tracks the southbound 10-year US Treasury (UST) yield on growing speculation that interest rate hikes will be delayed.

SGS investors have been doing well. As the 10-year SGS yield on Tuesday fell to 1.99 per cent from Monday's 2.09 per cent, the price rose 0.8 per cent to 108.79. Bond prices rise when yields fall, and vice versa. The 10-year SGS has a 3 per cent coupon.