On June 13, the 10-year yield on Singapore Government Securities (SGS) ended the week of June 9-13 at its lowest level this year, at 2.27%, unchanged week-on-week, and more than 200 bps below the 10-year US Treasury yield of 4.35%.
Despite geopolitical tensions - still around the on-again-off-again tariffs - and the regular Middle-Eastern flare-ups, the Straits Times Index’s pause and consolidation is likely to be temporary, with support appearing at 3,850, at the flat 100-day moving average. The 21-day RSI has turned down, but since both quarterly momentum and annual momentum are more or less intact, the STI should remain relatively resilient during the consolidation phase and is on track to reach and breach 4,000. It ended at 3,911 on June 13.
