HALISTER1: INSIDE SINGAPORE: USD/SGD Riskies Least Bullish in Three Months

INSIDE SINGAPORE: USD/SGD Riskies Least Bullish in Three Months

(Bloomberg) -- USD/SGD’s risk reversals are least bullish in three months amid broad weakness in U.S. dollar.
  • One-month risk reversals decline 0.01 vol to 0.35 vol, with calls favored over puts, which is lowest since March 7
    • Option volatility smile shows demand for calls has fallen faster than that for puts this month; click here for chart
  • USD/SGD rises 0.1% to 1.3529, trading near 61.8% Fibonacci retracement of 1.3539 in one-month rally started April 19; FX pair’s June 6 low matched this retracement level
  • ANZ recommends buying 10-yr govt bonds at 2.08%, target 1.85% with stop-loss at 2.22%, senior strategist Irene Cheung wrote in June 7 note; bond is cheap on 5-yr, 10-yr and 15-yr fly as well as on asset-swap basis
  • Six-month swap-offer rate fell to 1.33139% on June 7 from 1.33839%
  • Yield on 10-yr govt bond added 2 bps to 2.10% on June 7
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Irene Cheung (Australia & New Zealand Banking Group Ltd)

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