5-year note yield is 0.48%. It shows how cheap the capital is in Singapore.
S’pore 5-year note sale gets lowest yield in 26 years
SINGAPORE – A S$3.1 billion sale of five-year Singapore Government notes has drawn the lowest average yield in at least 26 years amid demand for top-rated debt, Bloomberg reported on Tuesday.
The 0.5 per cent Singapore Government Security maturing in April 2018 fetched an average yield of 0.48 per cent, the Monetary Authority of Singapore said. That’s the least on record going back to 1987, data compiled by the MAS show. The auction drew bids valued at 1.7 times the amount on offer, down from 1.97 in the previous offering in February 2012.
http://www.todayonline.com/business/spor...d-26-years
(26-03-2013, 09:57 PM)swakoo Wrote: [ -> ]Here's the graphic.
[Image: yieldcurve_5yr.gif]
Are investors expecting the CBs to keep rates near zero for the next 5 years? 
UK is probably going to get a downgrade soon - not a lot of AAA debt left nowadays...
Wah, this one combined with the 'Inflation hits eight-month high' thread, then got good excuse for everyone to rush to properties...
debt cannot rise faster than income sustainably.
income cannot rise faster than productivity sustainably.
(27-03-2013, 08:18 AM)AlphaQuant Wrote: [ -> ]debt cannot rise faster than income sustainably.
income cannot rise faster than productivity sustainably.
True at all levels of the economy.
(27-03-2013, 08:20 AM)godjira1 Wrote: [ -> ] (27-03-2013, 08:18 AM)AlphaQuant Wrote: [ -> ]debt cannot rise faster than income sustainably.
income cannot rise faster than productivity sustainably.
True at all levels of the economy.
Very true fundamentally
Problem is the timing. The market can remain irrational longer than you can remain solvent. We see that in the property markets now, with even shoebox retail with size smaller than a carpark lot, after shoebox resi.
Nobody in the know can say they don't see a bubble. I find it nonsensical that people claim they can't see a bubble forming. Problem is most people don't think they will be caught when the music stops.
Why will people lock their money in a 5 year bond that gives a return less than the inflation rate?
(27-03-2013, 03:49 PM)a74henry Wrote: [ -> ]Why will people lock their money in a 5 year bond that gives a return less than the inflation rate?
layman interpretation or prediction:-
QE by the World's Central Banks or whatever you like to call them will not stop at least for another 2 to 3 years. Another words it's better or safer to keep some hard assets as fiat money will be "cheaper" and "cheaper"
So looks like the Bull still have some more steam to run.
My 2 cents.
(27-03-2013, 03:49 PM)a74henry Wrote: [ -> ]Why will people lock their money in a 5 year bond that gives a return less than the inflation rate?
i think most interests are probably foreign - imagine if ur soverign bond is downgraded from AAA and u have a long duration need - with SGD on an appreciating path due to inflation and their numeraire getting sold off on recession, the net returns == 50bps + FX gains
prob better this way than to hold onto their local bonds which are getting sold off anyway.