Market Summary

Yield Movements

Singapore's local currency (LCY) government bond yields were mixed between 2 February and 29 May, rising about 7 basis points for maturities of 5 years and shorter while dropping around 12 basis points for maturities of 10 years and longer. The decline at the long end tracked lower-than-expected inflation, with April consumer price inflation steady at 1.8% year-on-year and below Bloomberg's 2.1% estimate.

Local Currency Bond Market Size and Issuance

Singapore's LCY bond market grew 1.5% quarter-on-quarter (q-o-q) to SGD910.5 billion at the end of March, faster than the 0.03% q-o-q increase in the previous quarter, as outstanding Treasuries rose 3.5% q-o-q and corporate bonds gained 1.0% q-o-q. In contrast, total LCY issuance slipped 0.6% q-o-q, as reduced sales of central bank bills and corporate bonds outweighed a 9.7% q-o-q rise in Treasuries and other government securities.

Sustainable Bond Market

Singapore's sustainable bond market reached USD33.5 billion at the end of March, up 0.9% q-o-q but slower than the 4.6% q-o-q expansion in the previous quarter, while its share of emerging East Asia's sustainable bonds outstanding increased to 4.4%. Green bonds comprised 86.2% of the total, and 57.0% of outstanding sustainable bonds had tenors exceeding 5 years, resulting in a size-weighted average tenor of 15.2 years.