Uptrend of interest rates remains but treasury yields may have less upside

Economists at UOB Global Markets & Economics Research expect both the Sora (Singapore overnight rate average) and yields on 10-year Singapore Government Securities (SGS) to move higher from current levels.

“Our forecasts for short-term interest rates are poised to head higher into the first half of 2023. We see … Sora at 2.60% by end 2022,” the UOB economists say in an update on July 28, the day after the US Federal Reserve Board announced a further 75 basis points (bps) hike in the US Federal Funds Rate (FFR).