Stocks decline as bond yields climb: Weekly Market Recap

A friend sent me a headline this week about the 30 year US government bond yield reaching its highest level since 2007.

Her question was simple: what does this mean for where I should put my money?

I thought it was a good question, because the search for yield is getting interesting again as long term bond yields in Singapore and the US have moved higher.

So if you have money sitting in cash today, the choices are widening. Do you keep it in something short term and liquid, lock in a yield for longer, or take more risk to earn a higher income?

For me, the starting point is still what I need the money to do. This is where I come back to our Four Pots of Wealth, with each pot serving a different purpose.

For my Liquidity Pot, I want the money to be there when I need it. This week, we look at what to expect from the upcoming 6 month T bill auction, as well as whether its worthwhile to invest in the latest Singapore Savings Bond which offers a 10-year average yield of 2.25%.

For my Income Pot, I would be looking to build a more sustainable stream of income over time. We evaluate if the upcoming 10 year SGS bond auction is worth a closer look.

We also look beyond government bonds. We found three Singapore blue chip REITs that raised their distributions, and take a closer look at infrastructure and data centres through our NetLink Trust podcast and latest kopi C conversation with NTT DC REIT.

That is why where we put our money matters. It is not just about what gives us the highest yield today, but whether our money can support the life we want in the years ahead.

Happy growing!

Gerald, Founder of Beansprout

⏰ This Week In Markets

📊 Stocks decline as bond yields surge  

What happened? 

The yield on the 30 year US Treasury rose above 5.2%, its highest level since 2007, as investors remained concerned about the outlook for inflation and government borrowing.

The July FOMC minutes sent a mixed message. While Fed officials generally expected inflation to ease through the rest of the year, they also highlighted significant uncertainty and the risk that inflation could remain higher than expected.

Oil prices added to these concerns, with brent crude prices rising to above $90 per barrel. If higher energy prices feed into broader inflation, it could make it harder for the Fed to cut interest rates.

What does this mean?

Higher long term interest rates are putting pressure on stock valuations, even as corporate earnings and economic growth remain supportive.

With oil prices rising and Treasury yields staying elevated, investors may become more selective, favouring companies with strong cash flows and healthy balance sheets.

What we are watching

Attention will turn back to US inflation and growth data, with July PCE inflation, and the second estimate of 2Q26 GDP due on Wednesday.

The Jackson Hole meeting will also be closely watched, particularly Fed Chair Warsh’s comments on the outlook for inflation and interest rates.

On earnings, NVIDIA will be the main event on Wednesday. Its results could provide an important indication of whether AI spending remains strong and whether the recent momentum in AI stocks can continue.

Why should I care?

Markets ended the week lower as higher interest rates and concerns about slowing AI momentum weighed on sentiment.

The S&P 500 fell 1.4% over the week, while the Nasdaq Composite declined 2.1%, with highly valued technology stocks coming under greater pressure.

Singapore stocks were also weaker, with the Straits Times Index falling 1.0% amid continued uncertainty over inflation and interest rates.

🚗  Moving This Week

• SATS shares plunged 13.6% on Thursday following its 1QFY2027 results, closing at S$4.12 amid concerns over margin pressure. While net profit rose 6% to S$75.1 million, operating margins were squeezed by Middle East disruptions and inflation, while contributions from associates and joint ventures declined. Read more here 
• OCBC has priced £1 billion of floating-rate covered bonds due 2029, further diversifying the bank’s wholesale funding sources. The bonds will pay interest at the compounded daily Sonia rate plus 0.48% per annum, with payments made quarterly. Read more here
• UOB has priced £1 billion of floating-rate covered bonds due February 2030. The bonds are expected to be issued on 25 August and will be listed on the Singapore Exchange. They will pay quarterly interest at the compounded daily SONIA rate plus 0.49% per annum, as part of UOB’s funding and capital management activities.
• Singtel’s credit rating was upgraded by S&P Global Ratings to “A+/A-1” from “A/A-1”, reflecting its stronger balance sheet and financial flexibility. S&P expects continued asset monetisation and earnings recovery to support Singtel’s credit profile despite elevated capex and higher shareholder distributions. Read more here
• ComfortDelGro will invest more than S$10 million to expand its private-hire vehicle fleet with BYD hybrid and electric vehicles. The investment reflects growing demand for PHVs among its drivers while supporting the group’s continued transition towards lower-emission vehicles. Read more here
• Golden Agri-Resources reported a 4.4% year-on-year increase in 1HFY2026 net profit to US$167.2 million, supported by higher palm oil prices, lower borrowing costs and foreign exchange gains. Revenue rose 7.3% to US$6.6 billion as higher CPO prices and increased sales volumes supported topline growth. Read more here
• UltraGreen.ai shares plunged nearly 35% after US regulatory approvals for competing ICG products from Zydus Lifesciences and Provepharm raised concerns over increased competition and pricing pressure. The company said there has been no material change to its business or outlook, despite investor concerns over its dominant position in the US ICG market. Read more here.

Source: Bloomberg, CNBC, Business Times, Edge Singapore

💡 The Big Important Story

Worth a look for income? 3 Singapore blue chip REITs raised dividends in August 2026

We look at 3 Singapore blue chip REITs that raised their dividends in August 2026. We compare their latest results and screen them for income investors.

🤓 What we're looking out for next week

Key dates

• Monday, 24 Aug: Haw Par, Moneymax ex-dividend. 
• Tuesday, 25 Aug: PropNex, APAC Realty ex-dividend.
• Wednesday, 26 Aug: Valuemax, Hong Leong Asia, Pan-United ex-dividend.  Nvidia results. US 2Q GDP 
• Thursday, 27 Aug: Delfi, Genting ex-dividend. 10-year SGS bond auction 
• Friday, 28 Aug: Nanofilm Technologies ex-dividend. US consumer sentiment (Aug)

Get the full list of stocks with upcoming earnings and upcoming dividends. 

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