Why analysts think that the SREITs are 'falling off a cliff'

10Y SGS yields hit 2-year high.

According to UOB Kayhian, 10-year Singapore Government Securities (10Y SGS) yields doubled in over a month, from 1.4% in early-May 13 to a two-year high of 2.8% on 24 June, before dipping back down to 2.6% on 1 July.

The sharp appreciation has brought SGS yields to its long-term average yield of 2.6% and is only slightly off the average 2.7% level between 2005-2007 before the great
recession and monetary easing by the Federal Reserve (Fed).

Here's more from UOB Kayhian:

The correction followed Ben Bernanke’s comments that if the Fed forecasts hold, the Fed will consider scaling back QE3 bond purchases later in 2013, and to end bond purchases by mid-14.

However, the reaction in the bond markets was swift and sharp, with investors globally exiting from fixed income investments. This was further compounded as investors fled emerging markets to the relative safety of the US, as growth in the US looks to accelerate while momentum slows in diverse economies from China to India and Brazil.

Although Fed officials have been keen to stress that the central bank may prolong bond purchases if the US economic recovery is weaker than anticipated, the longer-term trend is tilted towards a normalisation from a low interest rate environment.

Reaching the people who run Asia's businesses is harder than it used to be.

Inboxes are crowded. Attention is short. The executives you most want to reach — the founders, CFOs, and operators who actually move budgets — are the hardest to find through the usual channels. If you're building a company, a category, or a reputation, you already know this.

We've spent twenty years building the room they read. Singapore Business Review is where senior decision makers in Singapore and across Southeast Asia come for business coverage they can't get elsewhere — in print, online, and in person at the summits and roundtables we host across seven markets.

If you have something these readers should know about — a point of view worth publishing, a product worth their attention, an event worth their time — we'd like to hear what you're trying to do.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia