Market Summary

Yield Movements

Between 1 September and 31 October, local currency (LCY) government bond yields in Singapore declined an average of 8 basis points at both the short (3 months to 2 years) and long (20 years and above) ends of the curve on expectations of slower economic growth. Gross domestic product rose 4.2% year-on-year (y-o-y) in the third quarter (Q3) of 2025, moderating from 4.7% y-o-y in the previous quarter with downside expectations toward economic growth as trade-related sectors normalize. Consumer price inflation rose to 1.2% y-o-y in October but remains comfortably within the Monetary Authority of Singapore's (MAS) 0.5%-2.5% target range.

Local Currency Bond Market Size and Issuance

At the end of September, Singapore's LCY bonds outstanding rose 2.8% quarter-on-quarter (q-o-q), following a 0.6% growth in the second quarter (Q2). All outstanding bond segments exhibited expansions during the quarter - corporate bonds (5.0% q-o-q) was driven by increased issuance, Treasuries (3.4% q-o-q) and MAS bills (1.1% q-o-q) on reduced maturities. On the other hand, LCY bond issuance slightly declined 0.3% q-o-q, reversing the 1.4% q-o-q growth in Q2 2025. MAS bills, which made up the majority (86.8%) of total issuance, fell 2.0% q-o-q, while Treasuries ticked up marginally by 0.2% q-o-q due to increased Treasury bill offerings. Corporate bonds recorded the fastest growth, soaring 622.2% q-o-q to SGD9.7 billion.

Sustainable Bond Market

Singapore's sustainable bond market grew 11.4% q-o-q to USD31.2 billion on new issuances in the real estate, government, and financial sectors. Green bonds (85.3%) and bonds denominated in Singapore dollars (82.6%) continued to comprise most of outstanding sustainable bonds at the end of September. Issues with remaining maturities of over 5 years made up 59.0% of the total, leading to a size-weighted average tenor of 15.3 years.