Singapore's Region-Lagging Bonds Face Little Near-Term Relief
Overseas investors in Singapore government bonds may need to steel themselves for more disappointment.
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Overseas investors in Singapore government bonds may need to steel themselves for more disappointment.
PETALING JAYA: Foreign investors ramped up purchases of Malaysian assets last month in their hunt for carry returns amid bets global central banks are near the end of their tightening cycles.
The odds are stacked against ringgit bonds after the central bank warned that a heatwave may drive up inflation. Read more at straitstimes.com.
MUCH eye-rolling took place when Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim announced in early March that retirement savings with the Employees Provident Fund (EPF) can be used as security for personal loans because interest rates typically charged on personal loans are way above EPF dividend rates. Many saw the announcement as giving in to political pressure, negating the positives of halting pandemic-type premature withdrawals in February this year.
Malaysia is becoming the go-to destination for Asia bond investors like BlackRock Inc, with some looking to profit from possible signs of peak interest rates and others from an attractive yield pick-up.