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.

If you've been wondering whether SBR could work for your company — yes, probably.

A lot of the companies we partner with started as readers. They'd been following our coverage for a while, saw their own customers and competitors in it, and eventually asked the obvious question: could we do something with you? The answer is usually yes. The shape of it depends on what you're trying to do.

The options are broader than most people assume — thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. Some partners use one channel; most use a mix. We figure out the right combination by starting with your brief, not with our rate card.

So if the question has been on your mind, here's the easy way to ask it.

We'll tell you honestly whether we can help, and how. It's a better use of everyone's time.

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