MONEY MASTER

Singapore Exchange is broadening its derivatives lineup with new  India and ASEAN government bond futures , aiming to meet rising demand for interest-rate hedging amid oil-driven volatility and diverging monetary policies. The move strengthens SGX’s position as a regional fixed-income risk hub. Key Takeaways SGX to launch bond futures for India, Indonesia, Malaysia, Thailand and the Philippines Contracts will span 3-, 5- and 10-year maturities Settled in US dollars and priced on sovereign yield baskets Launch expected in the coming weeks Initiative comes amid oil price shocks and policy divergence What SGX Is Launching Singapore Exchange Ltd.  plans to introduce futures contracts tied to government bonds from: India Indonesia Malaysia Thailand Philippines Each country will have contracts based on: 3-year bonds 5-year bonds 10-year bonds The contracts will be: US dollar-settled Priced using the average yield of a basket of up to three sovereign bonds This structure allows inves...

A profound shift is underway in the  US$150 trillion global bond market : investors increasingly see  mega-cap companies  as safer than the governments backing their currencies. Driven by  rising government debt ,  political gridlock , and  disciplined corporate balance sheets , investors are accepting  lower yields  from companies like  Microsoft, Airbus, L’Oréal and Siemens  than from the sovereign bonds of the US, France or Germany. It’s a reversal of financial orthodoxy — and it’s accelerating. Governments Keep Borrowing, Corporates Keep Cutting Since the pandemic, companies have aggressively  cut costs, trimmed debt, and protected margins  despite higher interest rates. Governments did the opposite. G7 debt-to-GDP  is set to  keep rising through 2030 . Trump’s recent tax cuts may add  US$3.4 trillion  to US deficits over 10 years. France faces political deadlock and chronic deficits. Germany is bending ...