News – BT

Govt bonds to trade on SGX by mid-2011

SINGAPORE – Singapore government bonds will begin trading on the Singapore Exchange by the middle of this year, providing retail investors with a safe alternative to bank deposits, Finance Minister Tharman Shanmugaratnam said on Monday.

He said that retail investors concerned about low savings rates can also participate in government bond auctions or buy high quality corporate bonds that are now traded in smaller lots on SGX.

Singapore banks currently pay less than 0.2 per cent on savings deposits while inflation is running at above 3 per cent.

Mr Tharman said that the low interest rate environment in Singapore will continue for sometime as the financial system is flush with cash and Western economies will keep monetary policy loose in view of their weak economies. — REUTERS

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