Market Summary

Yield Movements

Between 3 November and 6 February, local currency (LCY) government bond yields in Singapore largely tracked the yield movements of United States Treasuries. Treasury bond yields in Singapore edged down an average of 3 basis points for maturities of 5 years and shorter (except 1-year bonds), while yields for maturities of 10 years and longer rose an average of 18 basis points. In addition to following the increase in yields for United States Treasuries, yields for longer-dated LCY bonds climbed as domestic consumer price inflation ticked upwards to 1.4% year-on-year (y-o-y) in January from 1.2% y-o-y in December.

Local Currency Bond Market Size and Issuance

At the end of December, Singapore's LCY bond market posted minimal growth of 0.03% quarter-on-quarter (q-o-q), totaling SGD896.9 billion. Outstanding corporate bonds ticked up 0.7% q-o-q despite a contraction in issuance due to a lower volume of maturities during the fourth quarter (Q4) of 2025. On the other hand, outstanding Treasuries and Monetary Authority of Singapore bills slightly contracted 0.1% q-o-q and 0.3% q-o-q, respectively, partly due to reduced issuance during the quarter. Aggregate LCY bond issuance fell in Q4 2025, summing up to SGD556.8 billion on a 2.6% q-o-q contraction. The reduction in issuance was driven by Monetary Authority of Singapore bills and Treasuries, which decreased 1.6% q-o-q and 3.3% q-o-q, respectively. Corporate issuance likewise fell 50.5% q-o-q in Q4 2025, primarily due to a high base effect from the previous quarter when issuance surged, driven by a heavy volume of bond sales from the real estate sector.

Sustainable Bond Market

At the end of 2025, private and public sector issuers constituted comparable shares of Singapore's sustainable bond market. Outstanding sustainable bonds reached USD32.6 billion by end-2025, posting 25.6% y-o-y expansion, and comprising 4.3% of emerging East Asian total. Outstanding sustainable bonds from the private sector made up 47.2% of the aggregate by end-2025, while private sector issuance increased 29.7% y-o-y to USD3.1 billion during the same year. Public sector bonds comprised the remaining 52.8% of total outstanding sustainable bonds, entirely consisting of green instruments. At the end of 2025, Singapore's average size-weighted tenor landed at 14.9 years, partly driven by outstanding sustainable sovereign bonds, which carried tenors of 28 years and longer.