FX.co ★ Singapore 10-Year Yield Retreats

Singapore’s 10-year government bond yield eased to around 2.23% in late March, pulling back from an almost three-month high as demand for local debt strengthened. The country’s government securities have increasingly been viewed as a regional safe haven amid Iran-related tensions, outperforming most other Southeast Asian bond markets.

Although Singapore’s economy is contending with headwinds from higher energy costs and supply chain disruptions tied to conflict in the Middle East, ample domestic liquidity and a resilient currency have helped its AAA-rated bonds remain comparatively stable.

At the same time, economists anticipate that the Monetary Authority of Singapore will tighten monetary policy next month, with the possibility of further tightening later in the year as rising import costs put pressure on the trade-dependent economy. The MAS is also expected to update its inflation outlook at that meeting; inflation is currently forecast to average between 1% and 2% in 2026.