HALISTER1: INSIDE SINGAPORE: SGD Slips as Soft JPY Leads Asian Currencies

INSIDE SINGAPORE: SGD Slips as Soft JPY Leads Asian Currencies

(Bloomberg) -- Singapore dollar starts the week with soft tone, tracking weak JPY and broad dollar strength after Yellen’s hawkish comments on May 27.
  • USD/JPY extends gain to 1-month high; sales-tax delay seen
  • USD/SGD now up 0.1% to 1.3804, approaching resistance zone in 1.3884/96 area, which was last seen in March; click here for chart
  • SGD rates underperformance relative to U.S. rates looks likely to persist this week, given the divergent month end theme of domestic supply overhang and month end extensions in the U.S., UOB analysts write in note dated May 27
    • Click here for chart of 10-year bond yield spread
  • Six-month swap-offer rate at 1.39933% on May 27 vs 1.40408% on May 26
  • SGD 10-year bonds closed last week up 6 bps to 2.17%, following a strong auction on May 27, which drew bid-to- cover ratio of 1.71 today, up from 1.57 at last offering a year before
  • SGD 5-year interest-rate swaps little changed at 2.0550%
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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