Strong fundamentals support Singapore’s bond market despite US Treasury yield movements
The city-state’s borrowing costs are in line with historical levels, says MAS deputy chairman Chee Hong Tat
Singapore's bond market remains robust despite fluctuations in US Treasury yields, according to MAS Deputy Chairman Chee Hong Tat. The city-state's borrowing costs are currently aligned with historical levels, with the prevailing 10-year SGS yield at 2.5%, slightly higher than its 10-year average of 2.2%. The discount between 10-year SGS and 10-year Treasury yields has widened over the past year, reaching 250 basis points as of September 2026.
Despite growing global market volatility, Singapore-dollar corporate bond issuances have been well-received, totaling S$28 billion in the first half of the year, with expectations of surpassing 2025 levels. Chee also highlighted that Singapore's interest rates have not risen as significantly as those in other jurisdictions, and the financial sector remains in good health.
Written by urgent.news from The Business Times - Singapore's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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