Singapore Bonds Surge Past Treasuries on Liquidity, Haven Demand

Singapore government bonds are extending their outperformance over US Treasuries to levels not seen since 2007, as a drop in local interbank borrowing costs points to a surge in haven demand.

By tightening monetary policy this week, the Monetary Authority of Singapore has helped attract greater global liquidity, allowing local securities to defy oil-driven inflation and also the lure of higher US yields.