No surprise then, that equities fell. The Straits Times Index lost 46 points week-on-week to end at 3,282 on Feb 24. Sadly, the STI fell below both a strong support and its still rising 50-day moving average which is currently at 3,303. This, coupled with the former support at 3,306 should be viewed as the resistance area. The 100-day moving average at 3,232 provides support.
During the week, US risk-free rates went on something of a roller-coaster, rising to as high as 3.92% on Feb 22 before easing slightly to 3.89% as at Feb 24. These rates had fallen to as low as 3.49%, in January before rebounding.
Similarly, yields on the 10-year SIngapore Government Securities (SGS) - which had been as low as 2.8% in January, rebounded as well. However, week-on-week the yield was flat at 3.27% as at Feb 24. But, this is still near the high for this year.
