The spread is expected to narrow as further policy easing in Singapore puts a floor under the nation's interest-rate swaps while those in the US fall as the Federal Reserve loosens policy. That dynamic benefits trades that receive fixed-rate payments in the greenback while paying in Singapore dollars.
The gap between Singapore and US dollar interest-rate swaps is expected to narrow from near the widest level on record as monetary easing bets grow.
The city state's two-year overnight indexed swap rates are trading around 160 basis points below those in the US, with the gap between them near the widest on record in data going back to 2020.
