Halister News

(Bloomberg) -- The spread between SGD 5y5y forward interest-rate swaps and vanilla 5y swaps is little changed in the past two months but could rise toward its 200-DMA of 106 bps if a budget deficit is announced on March 24, Bloomberg strategist Mark Cranfield writes.

• Spread now at 88 bps versus this month’s low of 83 bps, which is slightly above January’s 82 bp low; click here for chart
• Singapore may retain a spending deficit for 2016/17 in the annual budget, keeping modest upward pressure on long-term rates; see budget preview here
• 5y5y swaps at 2.9008%; down 68 bps this year
• 5-year swaps at 2.0250% bps; down 56 bps this year
• NOTE: Mark Cranfield is an FX strategist who writes for Bloomberg. The observations he makes are his own.