Japan "hot" money is flowing into Singapore capital market, after the massive QQE. Singapore $ is still a safe haven, i reckon.
Debt market is the one focus now. Will it go into equity market soon? I hope so...
(vested)
Singapore yield luring yen after topping US debt
SINGAPORE (March 6): Singapore isn’t just a destination for Japanese tourists. It’s now becoming one for bond investors.
Ten-year yields of 2.33 percent were 21 basis points more than same-maturity Treasuries, and the premium reached a 16-year high of 33 basis points in February.
The island-state’s yields came within 16 basis points of Australia’s last month.
Japanese investors plowed a record 42.2 billion yen (US$352 million) into Singapore bonds in January, up 129 percent from a year earlier, Investment Trusts Association of Japan data show.
Japanese investors’ hunger for overseas yields is growing as central bank buying crowds them out of their own sovereign debt market.
Bank of Japan holdings now exceed 20 percent of available bonds, pushing 10-year yields down to 0.4 percent and five-year yields to below 0.1 percent.
The shift may add to the weakness in yen, which has slumped 22 percent in two years.
“Yields are getting more attractive in Singapore,” said Hideo Shimomura, the chief fund investor in Tokyo at Mitsubishi UFJ Asset Management, which oversees US$67.3 billion.
“In Singapore, we only have a little exposure. There’s a lot of room to invest. Japanese investors will be entering this market.”
Singapore yields will probably climb past Australia’s in the next few months as the South Pacific nation cuts interest rates, he said.
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http://www.theedgemarkets.com/sg/article...ng-us-debt