Singapore’s 10-year government bond yield fell to around 1.87% in late August, extending its bearish trend that began in late 2024 to hit its lowest level since March 2022. The decline came after a dovish shift in US monetary policy pulled global yields lower. Federal Reserve Chair Jerome Powell highlighted rising downside risks to the labor market, keeping the door open for future rate cuts. Domestically, Singapore’s annual inflation rate eased to 0.6% in July from 0.8% in June, below market expectations of 0.7% and the lowest since January 2021, increasing the scope for a more accommodative stance by the Monetary Authority of Singapore. The MAS left policy unchanged in July, maintaining the slope and width of the Singapore dollar NEER band while cautioning about risks from potential US tariffs. Meanwhile, strong demand at recent SGS auctions, supported by Singapore’s solid fiscal position, helped push yields lower, extending the persistent downtrend.