The Singapore dollar bonds have performed strongly this year, coupled with declining interest rates, attracting companies to issue new Singapore dollar bonds. The issuance amount for the first 11 months of this year has reached SGD 32.2 billion, surpassing the total for any previous year.
In the first half of this year, the issuance of Singapore dollar bonds slowed down due to the impact of the &#34;Liberation Day&#34; equivalent tariffs in April, but rebounded in the second half, welcoming many new companies to issue bonds.
According to data from Oversea-Chinese Banking Corporation (OCBC) Global Markets Research, the issuance amount of Singapore dollar corporate bonds for the first 11 months of 2025 reached SGD 32.2 billion, exceeding last year's total of SGD 29.6 billion and surpassing the record of SGD 31 billion set in 2012.
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Data from Bondsupermart shows that, based on the Markit iBoxx Singapore dollar overall index, Singapore dollar bonds achieved a robust overall return rate of 8.2%, which tracks government and corporate bonds. Meanwhile, on a Singapore dollar hedged basis, the overall return rate for Asian bonds is 5.8%.
OCBC credit research analyst Huang Wenjie stated that the favorable interest rate environment and tightening credit spreads have made the borrowing environment in the Singapore dollar bond market attractive. This means that the coupon rates that issuing companies have to pay are not much different from the risk-free government bond coupon rates, indicating lower financing costs for corporate bonds.
Additionally, as the year-end approaches, the decline in trade tensions and geopolitical uncertainties also contributes to the bond market.
He pointed out that although the U.S. Federal Reserve has only cut rates by 50 basis points this year, the Singapore dollar benchmark rate, the three-month Singapore Overnight Rate Average (SORA), has fallen from 3% at the beginning of the year to 1.25%, mainly because investors are seeking safe havens, with funds pouring into the Singapore dollar market.
Eastspring Investments portfolio manager Pan Xiaoqian noted that the growth and depth of the Singapore bond market have attracted new global companies to issue bonds, diversifying funding sources.
According to Huang Wenjie and his team's statistics, new faces issuing Singapore dollar bonds this year include U.S. data center giant Equinix, Prudential, Netlink NBN Trust, real estate company Wee Hur Holdings, Thai financial institution Muangthai Capital, MoneyMax, and IREIT Global. Notably, Wells Fargo, one of the four major U.S. banks, also issued SGD 50 million in three-year bonds in November.
<h4>Further Reading</h4>
[Bank interest rates decline, local investors favor high-rated Singapore dollar corporate bonds]
<img src="https://imageproxy.pbkrs.com/https://dss0.zbstatic5.com/s3fs-public/styles/article_small_crop/public/articles/2025/07/06/2023112762414132dar5611.jpg/query-Mjk0MTk3NQ?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://dss0.zbstatic5.com/s3fs-public/styles/article_small_crop/public/articles/2025/07/06/2023112762414132dar5611.jpg/query-Mjk0MTk3NQ"/>](https://www.zaobao.com/finance/singapore/story20250706-7028969) GuocoLand secures 600 million yuan green financing, issues 120 million yuan perpetual securities with a coupon rate of 4.35%


Liu Yuru, portfolio manager of the Bondsupermart research department, stated in an interview with Lianhe Zaobao that interest rates may decline in 2026, and corporate bond issuance activities are expected to become more active; at the same time, investors may have stronger demand for higher yields, especially in the context of central bank interest rate cuts and sovereign bond yields becoming less attractive, which will drive up demand for bonds.
Pan Xiaoqian pointed out that Singapore has seen strong capital inflows this year, with high deposit levels, while loan growth remains weak, a situation expected to persist at least in the short term.
&#34;Therefore, the pursuit of yields by local retail and high-net-worth investors should continue to support Singapore dollar corporate bonds.&#34;
Liu Yuru is optimistic about medium to long-term Singapore dollar corporate bonds, especially those issued by companies with improving fundamentals in a slowing growth environment.
In terms of sectors, he is optimistic about banks and certain real estate developers, believing these sectors have relative value. &#34;Overall, the fundamentals of corporate bonds are relatively stable, and profitability is resilient, which is beneficial for market performance.&#34;
<h3>Singapore government bonds expected to issue 27.5 billion yuan next year</h3>
On the other hand, the Monetary Authority of Singapore previously announced the issuance schedule for Singapore government bonds next year, with total issuance expected to increase similarly to this year.
Zhang Shuxian, head of foreign exchange and interest rate strategy at OCBC Bank, pointed out that the total amount of Singapore government bonds has increased by 3.5% this year. Based on this calculation, the preliminary estimate for the total issuance of government bonds next year is 27.5 billion yuan.
She noted that the bonds issued next year will slightly favor short-term bonds, with three two-year bond auctions, compared to two this year. There will be no 50-year bond supply next year, but there will be a batch of 20-year green Singapore government bonds (infrastructure) issued in the second half of the year. This change is to cater to investor demand and may be welcomed by the market
Zhang Shuxian believes that the outlook for Singapore government bonds is stable, but it will be somewhat difficult to replicate this year's impressive performance

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This year, the issuance of new yuan corporate bonds reached a record high of 32.2 billion yuan, surpassing last year's and 2012's records. Lower interest rates and tightening credit spreads have attracted companies to issue bonds. The overall return rate for new yuan bonds is 8.2%, while Asian bonds stand at 5.8%. The decrease in geopolitical uncertainty has also facilitated market development

New Yuan corporate bond issuance reaches a record high, with 32.2 billion yuan issued so far this year | Lianhe Zaobao