Treasury bill yields decrease as stocks make a comeback: Weekly market overview
year-on-year to around S$20 billion in December, as the benchmark Straits Times Index (STI) recorded a 17-year peak. City Developments also achieved divestments of over S$600 million in 2024 as part of its capital recycling initiative. Mapletree Logistics Trust entered into a purchase agreement to divest a property at 8 Tuas View Square for about S$11.18 million, representing a substantial increase above its latest valuation. First REIT received a non-binding letter of intent from PT Siloam International Hospitals to acquire its portfolio of hospital assets in Indonesia.
The US core consumer price index (CPI), which excludes food and energy, saw a 0.2% increase month-on-month, falling short of the expected 0.3% rise. This slower price growth, the weakest since July 2024, alleviated concerns about prolonged inflationary pressures in the US. With this data, the Federal Reserve could now consider implementing further rate cuts in the year ahead. This news led to a rebound in US stocks after a recent selloff, supported by a decrease in US government bond yields, as investors turn their focus towards President-Elect Donald Trump’s upcoming inauguration.
Singapore Airlines (SIA) and Scoot reported carrying a total of 3.6 million passengers in December, marking a 7.1% increase from the previous year and setting a monthly record for the SIA group. Additionally, SGX’s total securities market turnover value rose by 5% year-on-year to approximately S$20 billion in December, with the STI reaching a 17-year peak. City Developments made divestments totaling over S$600 million in 2024, part of its capital recycling program. Mapletree Logistics Trust finalized a sale agreement for a property at 8 Tuas View Square for around S$11.18 million, a significant premium over its recent valuation. First REIT received a preliminary non-binding letter of intent from PT Siloam International Hospitals regarding the acquisition of its Indonesian hospital assets.
The current landscape presents a renewed interest in the 1-year Singapore T-bill, which boasts a yield of 2.80%, falling below the yield of the 6-month T-bill. However, investors in the 1-year T-bill face potentially lower reinvestment risks. Looking ahead, key events on the horizon include the upcoming US presidential inauguration day on Monday, 20 January, as well as earnings reports from Mapletree Logistics Trust on Tuesday, 21 January, Frasers Centrepoint Trust and Mapletree Industrial Trust on Wednesday, 22 January, and Mapletree Pan Asia Commercial Trust, OUE REIT, and Suntec REIT on Thursday, 23 January. Keppel DC REIT is slated to report earnings on Friday, 24 January.
