Market Summary

Yield Movements

Between 2 September and 31 October, movements in the local currency (LCY) government bond yields of Singapore were mixed, with yields dipping at the short and very long ends of the curve but rose for medium- to long-term securities (2-year to 15-year bonds). On 14 October, the Monetary Authority of Singapore decided to keep its monetary policy unchanged, citing positive economic growth outlook and decreasing inflationary pressure.

Local Currency Bond Market Size and Issuance

At the end of September, Singapore's LCY bond market grew 1.8% quarter-on-quarter (q-o-q) in the third quarter (Q3) of 2024 to SGD836.3 billion. Growth in Treasuries moderated to 0.6% q-o-q in Q3 2024 driven by reduced issuance during the period, while outstanding central bank bills also grew 4.4% q-o-q. The corporate bond segment fell 0.7% q-o-q driven by a decline in issuance during the quarter. LCY bond issuance contracted 3.7% q-o-q in Q3 2024 to SGD544.7 billion, with all bond segments posting q-o-q contractions.

Sustainable Bond Market

In Q3 2024, outstanding sustainable bonds grew 9.6% q-o-q to reach USD24.5 billion, predominantly composed of green bond instruments, with the total market roughly equally shared between government and corporate bonds. At the end of September, 43% of the total outstanding sustainable bonds had maturities exceeding 10 years, leading to a size-weighted average maturity of 17.6 years.