Singapore Bonds Fall, Pushing Yield to Three-Week High

Singapore bonds fell, pushing 10-year yields to the highest level in three weeks, as debt tumbled globally on signs of economic improvement.

Government securities in the island-state have handed investors a 0.7 percent loss in January, versus a 0.5 percent decline for sovereign bonds around the world, according to Bank of America Merrill Lynch indexes. Benchmark U.S. Treasury yields are near the highest since April. The U.S. and Singapore are both scheduled to issue jobs reports this week.

“The move in Singapore bond yields is just a response to higher yields in the U.S.,” said Thio Chin Loo, a senior currency analyst at BNP Paribas SA in Singapore. “There’s probably some positioning adjustment ahead of U.S. data.”

Singapore’s 3.125 percent bond due in September 2022 fell to S$115.10 as of 3:29 p.m. local time from S$115.60 yesterday. The yield increased five basis points, or 0.05 percentage points, to 1.43 percent, according to data compiled by Bloomberg. It was the highest level since Jan. 4, based on data from the Monetary Authority of Singapore.

The European Central Bank said this month lenders will repay more of its loans than forecast, spurring optimism the worst of the region’s debt crisis is over.

The U.S. jobless rate probably held at 7.8 percent in January, matching the lowest level since January 2009, based on a Bloomberg News survey of economists before the Labor Department reports the figure Feb. 1.

Singapore’s unemployment rate was probably 2 percent in the fourth quarter, based on responses from economists before the report tomorrow. It was 1.9 percent in the prior quarter, the least since the first three months of 2011.

The local currency slipped 0.1 percent to S$1.2347 per U.S. dollar. The Straits Times Index of shares added 0.6 percent to 3,279.78, set for the highest close since November 2010.

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