Stocks fall as US government bond yields spike: Weekly Market Recap

I was in Chengdu last week for a short holiday, and I was surprised by the energy of the city.

If you’ve been following the news, you might get the impression that China’s economy is struggling, especially with the ongoing US-China trade tensions. But on the ground, what I saw told a different story. The tech infrastructure was impressive, and everything from Didi rides to Meituan food deliveries worked seamlessly.

If you are looking to gain exposure to China through its blue chip leaders, we share a simple way to do so with an ETF in Singapore. 

Back home, I caught up with the Beansprout Telegram community, and a lot of the discussion remains focused on falling interest rates. 

The 6-month T-bill yield fell to just 2.2% this week, which makes the current Singapore Savings Bonds (SSB) issuance with a 10-year average yield of 2.56% look fairly attractive in comparison.

We’ve updated our latest guide to show you how to earn the highest yield on your savings, and we also discussed this in our most recent podcast episode. If you missed our AMA on Singapore bond ETFs, you can also catch the replay here.

With more questions emerging about the outlook for Singapore REITs, we took a closer look at three REITs that have managed to grow their dividends despite the sector headwinds.

My biggest takeaway from the China trip? It’s always good to see things for yourself. 

Just like investing, don’t just follow the headlines. It pays to know what you’re investing in before putting your money into it.

Happy growing!

Gerald, Founder of Beansprout

⏰ This Week In Markets

🏛 Higher US bond yields spooks markets

What happened? 

US government bond yields jumped sharply as concerns mounted over rising federal debt and widening fiscal deficits.

This came after credit rating agency Moody’s downgraded U.S. sovereign debt, sparking renewed investor anxiety.

The yield on the 30-year U.S. Treasury climbed above 5%, its highest level since 2023.

What does this mean?

Concerns over U.S. dollar assets deepened after the House of Representatives passed President Donald Trump’s tax bill, which many believe could significantly widen the federal deficit in the coming years.

At the same time, trade tensions escalated as President Trump threatened to impose a 50% tariff on imports from the European Union starting June 1, citing a lack of progress in ongoing trade negotiations.

Why should I care?

The S&P 500 declined as rising U.S. government bond yields weighed on investor sentiment.

Singapore stocks also ended lower, with Singapore REITs bearing the brunt of the sell-off due to higher bond yields. Notable losses came from Frasers Logistics & Commercial Trust, Lendlease REIT, and CDL Hospitality Trusts.

🚗  Moving This Week

• Singtel reported net profit of S$2.8 billion for its second half ended March 2025, compared with a net loss of S$1.3 billion for the previous corresponding period. The turnaround came on a net exceptional gain of S$1.51 billion mainly from the partial disposal of its Comcentre property and from the share of Airtel’s gains. Singtel proposed a final dividend of S$0.10 per share, consisting of a core dividend of S$0.067 per share and a value realisation dividend of S$0.033 per share. The company announced its first share buyback programme of up to S$2 billion. Read more here.
• SATS reported net profit of S$38.7 million for the three months ended Mar 31, 2025, an increase of 18.3% year-on-year, driven by business volume growth and rate improvements. The company has proposed a final dividend of S$0.035 per share. Read more here.
• City Developments reported total sales value of $1.9 billion under its property development segment in Singapore for 1QFY2025, up from the $736.8 million in the previous quarter. The group and its JV associates sold 795 units, driven by the launch of a JV project in The Orie, among other already launched projects. Read more here.
• CapitaLand Ascott Trust (CLAS) has priced $260 million worth of perpetual securities under its $2 billion multicurrency debt issuance programme. The perpetual securities carry a rate of distribution of 4.2% per annum. According to CLAS, the net proceeds from the issue of the perpetual securities will be used to redeem its $250 million fixed rate perpetual securities that were issued on June 30, 2015. Read more here.
• Mapletree Industrial Trust has announced the sale of three properties to Brookfield Asset Management for $535.3 million. The three properties are The Strategy and The Synergy at International Business Park, and the Woodlands Central Cluster. The price is a 2.6% premium over the independent valuations of the properties as of March 31, and 22.1% over their original investment cost of $438.4 million. Read more here.

Source: Bloomberg, CNBC, Business Times, Edge Singapore

💡 The Big Important Story

Markets Shaky, Yields Dropping: What Should You Invest In Now? Beansprout Podcast EP2

In this episode, we explore practical strategies for parking cash and generating income in today's market with falling interest rates and volatility.

🤓 What we're looking out for next week

• Monday, 26 May: iFast ex-dividend
• Tuesday, 27 May: Singapore Savings Bonds (SSB) application closing date
• Wednesday, 28 May: Jardine Cycle & Carriage, NetLink NBN Trust ex-dividend, Nvidia earnings
• Thursday, 29 May: US GDP data

Get the full list of stocks with upcoming dividends here. 

Source: SGX, Bloomberg, Refinitiv

Join the Beansprout Telegram group and Facebook group for the latest insights on Singapore stocks, REITs, bonds and ETFs.