We had been warning about higher SGD rates across all tenors over the past few weeks (see here and here) and this phenomenon is starting to play out. There is no obvious single trigger behind this. Between an extended period of rich SGD interest rates, a period of USD resilience and higher global interest rates, conditions were ripe for an adjustment higher in SGD interest rates even if the precise timing is difficult to pinpoint. We would flag two events that could have catalysed this shift. First, the announcement` of the 20Y Green SGS (Infra) could have prompted investors to take a deeper look into duration concerns at a time when yields are depressed. Second, the 1Y T bill (4 issuances a year) cutoff pushed up to 1.68%, meaningfully higher than the previous auction of 1.48%. This could have also led to investors reassessing where fair value for front-to-belly SGD rates should be. We see upside risks to our SGD rates forecasts on two counts – the odds of Fed tightening is being priced (especially given the spike in Brent prices to above USD 100 / bbl and the introduction of a new round of trade tariffs) and there is also scope for the wide US-SG spreads to compress somewhat. 
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