Weekly Sprout

Lower inflation drives fall in bond yields. Weekly recap and what to watch in the week ahead

By Beansprout • 13 May 2023 • 0 min read

T-bill yield declines, OCBC results and new Twitter CEO

Weekly Sprout 13 May 2023

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There’s some good news on the inflation front, as the US Consumer Price Index (CPI) continued to moderate. 

This could offer more room for the Fed to pause its interest rate hikes soon. 

With growing expectations that the Fed rate hike cycle might be over, government bond yields have been falling.

Closer to home, the cut-off yield on the latest Singapore 6-month T-bill auction fell to 3.78% p.a. Find out what else is causing the fall in bond yields. 

Weekly Market Update 13 May 2023.png
Source: Bloomberg. Price as of market close on 12 May


  • Tesla’s (TSLA) CEO Elon Musk said that a new Chief Executive Officer for Twitter is set to start in about six weeks. Separately, Tesla will recall 1.1 million cars, or close to every vehicle its has sold in China, due to a braking and acceleration defect. 
  • Most of Sea Limited (SE) employees will get a 5% salary increase from July, which was seen as a sign that the company has now achieved its goal of attaining “self-sufficiency”.
  • OCBC reported a net profit of S$1.88 billion in the first quarter, a 39% increase compared to the previous year. The higher earnings was driven by an increase in net interest income, as the bank’s net interest margin (NIM) rose to 2.30% with rising interest rates.
  • Seatrium announced that its net order book has grown to over S$20 billion in a business update. The company registered a higher overall cash balance following the merger with Keppel Offshore and Marine.
  • Manulife US REIT’s gearing rose to 49.5% as at 31 March, close to the regulatory limit of 50%. The manager of the REIT said that due diligence relating to its potential transaction with Mirae Asset Global Investments is “substantially completed”, with the target completion of the transaction in the second or third quarter of 2023. 

Source: Bloomberg, CNBC, Financial Times, Business Times, Edge Singapore



T-bill yield falls to 3.78%. More CPF applications driving higher demand?

Applications for the 6-month T-bill rose to S$12.0 billion in the latest auction on 11th May.

Singapore Tbill auction 11 May 2023.jpg


  • ­­Tuesday, 16 May: Singapore Airlines earnings, Sea Limited earnings
  • Wednesday, 17 May: Target earnings
  • Thursday, 18 May: Alibaba, Grab, Walmart earnings

Source: Bloomberg, SGX 


Bond yields are falling. Time to look at REIT ETFs?

The CSOP iEdge S-REIT Leaders ETF currently offers a dividend yield above the cut-off yield of the latest 6-month Singapore T-bill.

REIT ETF Higher Yield CSOP iedge S-reit leader index.jpg

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What happened? 

HDB has announced changes to how it assesses income and distributes grants to home buyers. 

Buyers of HDB flats will now have their incomes assessed over a period of 12 months, instead of 3 or 6 months. 

What does this mean?

The tweaks come together with measures to streamline the HDB buying process from 9 May.

The new HDB flat eligibility letter (HFE) will replace the HDB loan eligibility letter in a move intended to give buyers a clearer picture of their purchasing costs and financing options. 

Why should I care? 

The longer assessment period could allow more people to be eligible for HDB loans and housing grants.

Read our step-by-step guide on applying for the HDB Flat Eligibility Letter (HFE)


kopi-C with Pan-United’s Group Head of Corporate Development: 'We're decarbonising the world with concrete'

Jim Teh, Group Head of Corporate Development of Pan-United, believes in fighting climate change through innovating in its concrete products.

Pan United Jim Teh.jpg


The quality of Singapore Airlines (SIA) meals was under scrutiny recently, after social media users posted photos of their economy class meals. Some also shared that even the food from the National Service (NS) cookhouse looks better. However, there were also SIA supporters who defended the airline, noting that the photos taken might be of a snack served between meals.   

Source: Mothership

This article was first published on 13 May 2023 .

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