2 November 2016
Rates & FX View
SGS 2017
Issuance Calendar Skewed Towards Re-openings; Total Gross Issuances to Range
Between SGD14-15bn
Highlights
¨ Strong
30y SGS mini auction to conclude 2016 issuance plan.
¨ Stellar
performance recorded for SGS, outperforming its AxJ peers with the exception of
IndoGBs and GolSecs.
¨ Total
gross SGS issuances to range between SGD14.0-15.0bn; net SGS supply to remain
within the 10-year average range.
¨ Prudent
management of supply and duration risk.
¨ Healthy
demand for SGS expected in the year ahead despite the highly externally driven
SGS market.
¨ Challenging
economic outlook for Singapore in the year ahead; mildly bearish stance on SGD
remains appropriate.
¨ Neutral
duration view on SGS, although favourable risk reward dynamics associated with
trading the tight SGS-UST spreads.
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