STI pulls back as bond yields surge: Weekly Market Recap

Does getting wealthier make us more financially secure?

At first glance, the answer seems obvious. If the value of our savings and investments is rising, we should feel more financially secure too.

But recent data made me think about this differently. Singapore household net worth grew 6.8% year on year in 2Q 2026. While household assets rose 7.0%, debt grew even faster at 8.3%, driven by higher mortgages and personal loans.

So getting wealthier does not necessarily tell us the full story about our financial security.

For me, financial security is not just about how much we own. It is also about how much we owe, whether we have enough money set aside for our needs, and whether our investments are helping us achieve what we want from our wealth.

This feels particularly relevant with interest rates moving again.

For the money we want to keep relatively safe, yields have become more attractive again. With the latest best fixed deposit rates rising to as high as 2.10% p.a., we looked at what to expect for the upcoming T-bill auction on 8 October. 

For those investing for growth or income, higher interest rates also make it more important to be selective about where we take risk. We looked at what drove the three best-performing Singapore blue-chip stocks in September, and what higher interest rates could mean for Singapore REITs.

There are also more ways to access opportunities in the Singapore market. MAS appointed five more asset managers under the Equity Market Development Programme (EQDP), while SGX is reducing the board lot size for selected stocks from 5 October, making them more accessible to investors.

And with the year end approaching, it is also a good time to think about our longer term retirement plans. We updated our complete guide to the Supplementary Retirement Scheme (SRS), along with how SRS tax relief works while building up your retirement savings.

Ultimately, getting wealthier helps. But I think financial security comes more broadly from having enough for what we need today, and preparing for the life we want in the years ahead.

Happy growing!

Gerald, Founder of Beansprout

⏰ This Week In Markets

📊 Stocks mixed as bond yields surge

What happened? 

US government bond yields were in focus, with the 10 year US government bond yield briefly climbing to 5.34%, its highest level since 2002.

The 30 year US government bond yield also reached a 24 year high.

Yields eased somewhat after weaker than expected jobs data. Nonfarm payrolls rose by just 29,000, well below expectations of around 90,000, while the unemployment rate edged up to 4.2% from 4.1%.

What does this mean?

The latest employment data has added to uncertainty over the direction of interest rates.  A weaker labour market may reduce the need for significant rate hikes. 

However, with inflation still above target, it remains unclear how long rates will stay elevated.

As US Treasury yields government bond yields surged to multi decade highs, we look at what is driving the move, what to watch next, and the impact on bonds, stocks and other asset classes here.

Why should I care?

The S&P 500 fell 0.3% for the week, while the Nasdaq Composite rose 0.5%.

The AI trade continued to support technology stocks, with Nvidia reaching a new high following its US$150 million share buyback programme.

In Singapore, the Straits Times Index fell 1.3%, led by City Developments, which plunged 14.8% during the week. Investors reacted negatively to its strategic review, as some had hoped to see stronger efforts to improve returns. 

🚗  Moving This Week

• CDL plans to expand its private funds business and double assets under management to S$10 billion by FY2029, supported by a new dedicated CEO and management team. The renewed push forms part of CDL’s refreshed three-year growth strategy, after its previous target of reaching US$5 billion in fund-management AUM by 2023 was not achieved. Read our analysis here 
• DBS Group Holdings has appointed Gautam Banerjee to the boards of DBS Group Holdings and DBS Bank with effect from Oct 1. Banerjee is chairman and senior managing director of Blackstone Singapore and previously spent more than 30 years at PwC, including nine years as executive chairman of PwC Singapore. Read more here 
• DFI Retail Group will receive around US$340 million from selling its stake in the Maxim’s food and beverage business to its long-time joint venture partner. As part of the reorganisation, DFI Retail will take full control of around 1,100 Starbucks outlets across seven Asian markets, including Singapore. DFI Retail plans to open 250 more Starbucks stores, mainly in Vietnam and Thailand, as it targets turning the business into a billion-dollar operation within three years. The group sees both markets as high-growth coffee markets and aims to make Starbucks its second-most profitable business. Read more here
• Centurion Corporation plans to acquire six parcels of land in Adelaide for S$22.3 million to develop a mixed-use accommodation project, including purpose-built student accommodation. The 3,300 sq m property is located at North Terrace and Gawler Place, with the proposed development subject to planning and regulatory approvals. Read more here
• Amova Asset Management increased its stake in Frencken Group to 8.03% after buying 785,100 shares at an average price of S$2.675 on Sep 23. The purchase follows earlier share purchases and its participation in Frencken’s S$100 million placement, while Frencken shares have gained 85.2% year-to-date. Read more here
• UMS Integration plans to raise RM450 million (S$141 million) through a placement of 52.94 million new shares at RM8.50 each, representing a 1.1% discount to its latest Bursa VWAP. Around three-quarters of the proceeds will be used to expand its operations in Penang, with the placement increasing UMS’s share base by 5.63%. Read more here

Source: Bloomberg, CNBC, Business Times, Edge Singapore

💡 The Big Important Story

Interest rates are rising again. 5 things to watch for Singapore REITs

The Fed has raised rates again. We look at which Singapore REITs may face greater refinancing pressure, higher funding cost, and what investors should watch.

🤓 What we're looking out for next week

Key dates

• Monday, 5 Oct: SGX board lot size adjustment for selected stocks
• Tuesday, 6 Oct: Top Glove earnings
• Wednesday, 7 Oct:  FOMC minutes
• Thursday, 8 Oct:  Jardine Cycle & Carriage ex-dividend, 6-month T-bill auction
• Friday, 9 Oct: Singapore GDP flash estimates

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

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