“The yield on 30-year Singapore Government Securities could see a further discount relative to 30-year Treasuries if US fiscal worries kick up another notch, which might not be imminent,” said Eugene Leow, a fixed-income strategist at DBS Bank in Singapore.
The yield gap between Singapore’s ultra-long bonds versus Treasuries is expected to expand from already-record levels as the nations’ debt supplies continue to diverge.
Singapore’s 30-year government bond yields sit around 200 basis points below Treasuries of a similar tenor, the largest discount ever. The gap is set to widen further if US President Donald Trump’s policies add to the nation’s fiscal burden and push up Treasury yields at a time when meagre sovereign debt issuance in Singapore drags down local rates.
