Singapore’s New Long Bonds Set to Gain From Global Fear Factor
(Bloomberg) — Singapore’s first-ever sale of bonds to finance infrastructure projects is ideally timed as signs the global recovery is stuttering revs up demand for top-rated debt.
The new 30-year securities should appeal to investors due to escalating concerns about Chinese bonds amid the Evergrande crisis and fears for global growth given a surge in Covid infections. Yields are also attractive, with those on Singapore’s existing 30-year debt climbing above those on U.S. Treasuries last week.
The Monetary Authority of Singapore will announce on Tuesday how much it intends to raise from the inaugural auction due to take place on Sept. 28. The central bank has already been paving the way for the issue by reducing the size of 15- and 20-year auctions since announcing plans for the new infrastructure bonds in February.
The new securities are the first to be offered under the central…