Singapore’s Record Yield Gap With US to Widen on Debt Supply

The yield gap between Singapore’s ultra-long bonds versus Treasuries is expected to expand from already-record levels as the nations’ debt supplies continue to diverge.

Singapore’s 30-year government bond yields sit around 200 basis points below Treasuries of a similar tenor, the largest discount ever. The gap is set to widen further if US President Donald Trump’s policies add to the nation’s fiscal burden and push up Treasury yields at a time when meager sovereign debt issuance in Singapore drags down local rates.