Property bonds in focus

SGD rates closed 5-6bp higher across the curve, says OCBC Treasury Research.

OCBC Treasury Research noted:

SGD rates closed 5-6bp higher across the curve, compared to a 3bp move in CT10. It was an active day yesterday, with property bonds still in focus. We saw two-way flows in CAPLSP, GUOLSP, OUESP and CENCHI.

There was some PB selling interests in CENCHI and GUOLSP while external retail and institutional accounts were buyers. In financials, MAYMK perpetual was lifted at 108.5.

The key focus on the primary front yesterday was the NTUC Income Insurance Cooperative Ltd deal where its S$600mn 15nc10 issue was priced at 3.65% (SOR + 188bp). Demand for the paper was strong with an order book in excess of more than S$9bn for a S$600mn deal.

In the CNH space, fixing was 13pips lower at 6.3443 with DF continuing to trend up, 1-year DF higher by 5-7bp at about 2.2%, and CCS about 2-3bp higher.

Spread compression continued, with short-dated CGB and policy bank papers lower by 0.1pt-0.2pt on higher CCS, while HY and long-dated IG remained firm. We saw buyers of MITSCO, ICBCAS, HAIAIR, CHIPWR, TSLIEN and ROADKG.