Irene Cheung, Exploration Analyst at ANZ, details out that the MAS will market SGD0.8bn 20Y (reopen) SGS (by way of mini-auction) on Wednesday, 26 April and the desire at this auction will be mostly from onshore acquire-to-maintain institutional traders.
“The external setting has turned a lot more supportive to the SGS market. Immediately after the US Federal Reserve signalled at the March FOMC meeting that it would adhere to a gradual tightening route, President Trump mentioned that he favored very low interest charges. With US info also demonstrating some softness currently, external headwinds will probably be fewer of a drag for SGS in the in close proximity to term even however we expect the Fed to be on monitor to hike yet another two moments this calendar year.”
“On the domestic entrance, easy liquidity situations will also be supportive. Whilst international participation in long dated SGS is minimal, a fewer susceptible SGD will also support sentiment. The MAS taken care of a neutral S$NEER coverage at its coverage overview on 13 April.”
“The issuance measurement of USD0.8bn should be absorbed but observe that there will be a lot more source of duration in the scheduled 30Y auction in May perhaps.”