Friday, December 19, 2008

5-Year SGS bond yield

The latest 5-Year SGS bond yield is 1.53% at the end of Nov 2008. That is one of the lowest yields if you look at the 20 year chart. The lowest yield ever reached was 1.32% on May 2003 which was at the end of SARS period.

It is interesting to see how low the yield can go before investors decide that bonds are not attractive anymore to them. When that happens, more money will get pumped into equities. I say it will not be long before the 5-Year SGS bond yield to start reversing its trend. I really wonder why anyone would want to lock their money in SGS bonds for 5 years at such a miserable rate.

Historical 5-Year SGS Bond Yield

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