Shorter one-year and 5-year tenors remain largely unchanged, with one-year falling 1 base points and 5-year rising by 1 base point. Yet, 10-year yields have seen a 3 base point rise w-o-w to end higher at 0.92%. Ang notes that this is unlike 10-year US Treasury yields falling five base points w-o-w amid rising market uncertainties.
“We expect yields to be depressed this week as risk-off sentiments drive government bond prices lower,” Ang says, noting that spreads between Singapore government bonds and US Treasuries are wider between the two- to five-year tenors and the 10-year maturities.
Ang also highlights new bond releases in the past week. Singapore Technologies Telemedia Pte Ltd, a wholly-owned subsidiary of Temasek Holdings, has issued a $375 million perpetual bond callable on 2 July 2027 with a final price guidance of 4.1%.
Demand for the bond was overwhelming with an order book exceeding $2 billion, with some 98% of this demand coming from Singapore.
For bonds maturing this week, Century Sunshine Group Holdings Limited bond CENSUN 7% ‘20s will mature this Friday on 3 July 2020. The company has postponed its extraordinary general meeting scheduled for 18 June 2020. It seeks to raise HK$300 million ($53.9 million) to refinance its debts.
Oxley Holdings Limited have also announced the sale of Chevron House for a total consideration of $315 million to boost liquidity. The firm will receive an estimated $200 million on completion of the sale.
