2025 WAS a year that tested – and proved – the resilience of the Singapore dollar bond market. The year opened with benchmark rates at a brief high in January. Yet, as the months unfolded, rates began a steady descent, largely in step with major developed-market central banks.
The Sora Overnight Indexed Swap (Sora-OIS) curve mirrored this trend, slipping lower in a measured fashion, led by a sharp decline in short-term yields. Six-month Sora fell by nearly 150 basis points, while the 10-year dipped around 50 basis points, leaving the curve noticeably steeper by year-end.
Domestic government bonds followed a similar rhythm. Six-month Singapore Treasury Bill yields dropped sharply, while five and 10-year SGS (Singapore Government Securities) yields eased more gradually. To illustrate, the six-month T-bill yield tumbled roughly 140 basis points, while the 10-year slipped about 70 basis points.
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