View Full Version : Sibor, SOR rise sharply amid tighter funding conditions
http://www.businesstimes.com.sg/banking-finance/sibor-sor-rise-sharply-amid-tighter-funding-conditions
Sibor, SOR rise sharply amid tighter funding conditions
Three-month Sibor rises to 0.91% and SOR is up at 0.89% as domestic funding tightens amid a weak Singdollar
By Siow Li Sen
[email protected]
@SiowLiSenBT
Nov 16, 2016
DOMESTIC interest rates have shot up finally and are back to July levels as domestic funding tightens amid a weak Singapore dollar.
The key three-month Sibor (Singapore Interbank Offered Rate), used to price mortgages, rose to 0.91 per cent on Tuesday from 0.88 per cent on Monday after flatlining around 0.87 per cent since July. The year-high was 1.25 per cent on Jan 19.
The volatile three-month SOR (swap offer rate), a benchmark for commercial loans, was up sharply at 0.89 per cent on Monday, up from 0.78 per cent last Friday. After diving to the year-low of 0.48 per cent on Sept 26, the SOR had been trundling below 0.70 per cent the past two months.
Said Eugene Leow, DBS Bank's interest rate strategist: "It took a big shock to Asia FX and the SGD over the past few days to push the SOR and Sibor up."
"The FX dynamics were able to overcome ample liquidity conditions in the system," he said.
The SGD has fallen as much as 2.2 per cent to S$1.42 against the US dollar since Nov 9 on worries the next US president, Donald Trump, will turn protectionist. It recovered a little on Tuesday afternoon to S$1.41.
Last Friday, the Monetary Authority of Singapore said it was ready to intervene to curb excessive volatility in the Singdollar as Trumpflation fears hit regional currencies.
According to OCBC Bank economist Selena Ling, the laggard reaction of the local interest rates is likely part of Asian markets waking up to the Trump reality.
"Probably Trump's victory last week and the ensuing bear-steepening of the US Treasury yield curve was a wake-up call for Asian markets, especially given the last few days of market volatility in both currency and bonds," said Ms Ling.
The benchmark 10-year US Treasury note yield rose as high as 2.30 per cent, its highest since early January, while a bond market gauge on investors' 10-year inflation expectations hit its highest level in over two years, Reuters reported.
"Market players are likely anticipating the probable FOMC (Federal Open Market Committee) December rate hike, coupled with tighter domestic funding conditions and weaker SGD. A bit laggard, but SGD forward and swap markets had already reacted earlier," she said.
There's now an 80 per cent chance that the US FOMC may vote next month to hike interest rates.
Underlying expectations of a Fed fund move in December probably also play a part in keeping rates supported, especially "if we incorporate the view that a Trump administration could boost spending that could see inflation going higher", said Saktiandi Supaat, head of FX Research at Maybank Singapore.
The Sibor could hit 1.25 per cent by end-2016, and 1.75 per cent by end-2017, said Credit Suisse economist Michael Wan.
proud owner
23-11-16, 22:38
http://www.businesstimes.com.sg/banking-finance/sibor-sor-rise-sharply-amid-tighter-funding-conditions
Sibor, SOR rise sharply amid tighter funding conditions
Three-month Sibor rises to 0.91% and SOR is up at 0.89% as domestic funding tightens amid a weak Singdollar
By Siow Li Sen
[email protected]
@SiowLiSenBT
Nov 16, 2016
The Sibor could hit 1.25 per cent by end-2016, and 1.75 per cent by end-2017, said Credit Suisse economist Michael Wan.
Let's wait and see...... end 2016 is not too far from now ...
What is your take?
Could Sibor hit 1.25 per cent by end-2016, and 1.75 per cent by end-2017?
Let's wait and see...... end 2016 is not too far from now ...
proud owner
24-11-16, 00:31
What is your take?
Could Sibor hit 1.25 per cent by end-2016, and 1.75 per cent by end-2017?
tighter liquidity = higher SIBOR higher SOR
technical recession = potentially lower rates ...
chances are rates will stay around current levels ......
If can reach means economy doing very well. We should all be very happy.
No money, spend more money mean interest rate go up ????? Dollar become stronger can go China buy more goods.
How long more can the American play the game.
No money, spend more money mean interest rate go up ????? Dollar become stronger can go China buy more goods.
How long more can the American play the game.
People have been reading and trusting the news forever, even though they were consistently punked by the news.
Trump's ascension and expansionary criteria means he will be borrowing much more. Britain is also borrowing much more to tide over Brexit period.
It doesn't even make sense for interest rates to go up, but if it does, it means things are going to get very very positive for all. Why not?
If US increases its interest rate, China will be very happy. Chinese product will be very competitive. There is no need for China to sell US treasuries to keep Yuan low. US will only hurting herself.
China is working hard to keep USD high, because China growth is softening. The bottom line China need to sell its products.
bargain hunter
24-11-16, 19:15
0.91% is SHARPLY HIGHER? creating sensational news effect again.
proud owner
24-11-16, 22:59
0.91% is SHARPLY HIGHER? creating sensational news effect again.
USDSGD now 1.43 ......
good for me ..... time to change some USD back to SGD ....
Should just keep your USD......
More upside for USD and more downside for SGD coming.......... :p
USDSGD now 1.43 ......
good for me ..... time to change some USD back to SGD ....
Should just keep your USD......
More upside for USD and more downside for SGD coming.......... :p
You are too naive to think that USD upside due to US economic strength. China has been playing as USA's casino junket for so long. China wants US to keep playing. Maybe China want US to slowly wager everything. When the chips is low, China will offer more credit line.
The way China do this is through buying of US treasury.
http://www.straitstimes.com/opinion/the-economic-roots-of-trumps-win-over-clinton
Good read. Predatory value extraction.
USD upside is due to what reason we don't really need to care, although it is a FACT that US economy is STRENGTHENING,
and as long as we know that USD is UP from very LOW point and the trend is UP and hence the probability of going UP is VERY VERY MUCH HIGHER...
And we can compare to Singapore which is also a FACT that Singapore economy is WEAKENING significantly and likely going into recession in next few quarters,
and SGD is already DOWN from a very HIGH point and the SGD trend is DOWN and hence the probability of SGD going DOWN (vs USD) from here onwards is like almost 99.9%!!!
You are too naive to think that USD upside due to US economic strength. China has been playing as USA's casino junket for so long. China wants US to keep playing. Maybe China want US to slowly wager everything. When the chips is low, China will offer more credit line.
The way China do this is through buying of US treasury.
Great article indeed!
Isn't this happening everywhere (including Singapore), not just US?
In Singapore, it is now all so common that the top executives of many companies take most of the profits of the companies, while their workers/subordinates/engineers etc are paid SHIT compared to the top executives pays (e.g. ex SMRT's CEO large increase in compensation vs squeezing of their engineers' pay so much so that many experienced ones left and they are now still trying to fix their problems because many of those engineers left have little experience to solve SMRT engineering's problems).....
It is also the same in government statutory boards, just compare the total renumeration of the Ministers and Perm Secs to those of the middle-management and to those of the more junior white-collar degree holders......... The pay difference is like >80x (vs a fresh degree holder)? Obviously if you compare to the cleaners it would be like >240x ?
http://www.straitstimes.com/opinion/the-economic-roots-of-trumps-win-over-clinton
Good read. Predatory value extraction.
USD upside is due to what reason we don't really need to care, although it is a FACT that US economy is STRENGTHENING,
and as long as we know that USD is UP from very LOW point and the trend is UP and hence the probability of going UP is VERY VERY MUCH HIGHER...
And we can compare to Singapore which is also a FACT that Singapore economy is WEAKENING significantly and likely going into recession in next few quarters,
and SGD is already DOWN from a very HIGH point and the SGD trend is DOWN and hence the probability of SGD going DOWN (vs USD) from here onwards is like almost 99.9%!!!
U know what happened to a gambler who refuse to play?....he has to pay.
China will sell the US treasuries gradually. In the short term the global will experience dollar shortage. This is because in every 1 dollar print, there are 20 dollar in dollar denominated debt. China will accumulate so much USD until one day China will release all the dollar into the US economy by buying assets and causing hyper inflation.
As u can see the process is already on the way. Trump presidency will in fact accelerate this process. All this dollar shortage is because China is sucking the global supply of USD by divesting on the US treasury. But when the moment is come, China will blow the dollar reserve to the world. Dollar will become worthless.
We will see........
Anyway, you seem to be quite ignorant about economics, and why China needs to buy US Treasuries (Now even if they don't wish, they have no choice!)
Remember the saying?: If you owe the bank a little money, they will want to declare you bankrupt to take back everything when the rain comes!
However, If you (read: US) owe the bank a fortune (read: China), they (read: China) will have to work with you (read: US) when the rain comes!
It is as true as ever, even now.......
I am sure that within my life-time, I will never see USD become worthless, most likely SGD will go worthless first very much earlier before USD ever become worthless - If US, EU, etc starts protectionism and Singapore depends on free-trade to thrive/survive......
And China? Who knows, it is run by a dictatorship and the rich-poor divide is now so wide that if not solved will cause China to go into chaos first in future before they even have chance to take on US......... :pirate:
U know what happened to a gambler who refuse to play?....he has to pay.
China will sell the US treasuries gradually. In the short term the global will experience dollar shortage. This is because in every 1 dollar print, there are 20 dollar in dollar denominated debt. China will accumulate so much USD until one day China will release all the dollar into the US economy by buying assets and causing hyper inflation.
As u can see the process is already on the way. Trump presidency will in fact accelerate this process. All this dollar shortage is because China is sucking the global supply of USD by divesting on the US treasury. But when the moment is come, China will blow the dollar reserve to the world. Dollar will become worthless.
The debts held by China are in USD I think.
The higher USD goes, the more weight the debtors can reclaim upon maturity. Great deal!
We will see........
Remember the saying?: If you owe the bank a little money, they will want to declare you bankrupt to take back everything when the rain comes!
However, If you (read: US) owe the bank a fortune (read: China), they (read: China) will have to work with you (read: US) when the rain comes!
It is as true as ever, even now.......
I am sure that within my life-time, I will never see USD become worthless, most likely SGD will go worthless first very much earlier before USD ever become worthless - If US, EU, etc starts protectionism and Singapore depends on free-trade to thrive/survive......
And China? Who knows, it is run by a dictatorship and the rich-poor divide is now so wide that if not solved will cause China to go into chaos first in future before they even have chance to take on US......... :pirate:
The debts held by China are in USD I think.
The higher USD goes, the more weight the debtors can reclaim upon maturity. Great deal!
That is what it called "dollar shortage". When China redeem US dollar based debt, global will experience "dollar shortage" because China sucking significant global dollar supply. Dollar increase not because US economy strength, on the contrary it because its line of credit getting wound up. The whole world knew dollar will become worthless one day, that's why more countries are looking for alternative trade currency. When the America stop buying the global goods, the US dollar will become worthless eventually. But before that, US based debt will get wound up. As Dollar debt get wound up, dollar will increase in value due to the fact that there are more Dollar debt than dollar itself. So China will liquidate the debt gradually, because there is no enough dollar in the world to liquidate all her US treasury holding at one go. Some of the proceed from the treasury sale will buy US assets such as US companies and properties. That's the long term game. In the short term China ability to increase US dollar is working in their favor. Now let's see if trump will abandon global trade. If US stop playing, China debt collector will start knocking demanding payment.
I don't think I am wrong to say you are ignorant about economics!
Your statements are full of contradictions!
First you said:
- When the America stop buying the global goods, the US dollar will become worthless eventually
- So China will liquidate the debt gradually
Then you said:
- Some of the proceed from the treasury sale will buy US assets such as US companies and properties.
Well well, so you are telling us that if China knows USD will become worthless eventually, yet China is still buying US companies and properties (that must be based in USD that will become worthless)? Contradictions indeed! :hopelessness:
That is what it called "dollar shortage". When China redeem US dollar based debt, global will experience "dollar shortage" because China sucking significant global dollar supply. Dollar increase not because US economy strength, on the contrary it because its line of credit getting wound up. The whole world knew dollar will become worthless one day, that's why more countries are looking for alternative trade currency. When the America stop buying the global goods, the US dollar will become worthless eventually. But before that, US based debt will get wound up. As Dollar debt get wound up, dollar will increase in value due to the fact that there are more Dollar debt than dollar itself. So China will liquidate the debt gradually, because there is no enough dollar in the world to liquidate all her US treasury holding at one go. Some of the proceed from the treasury sale will buy US assets such as US companies and properties. That's the long term game. In the short term China ability to increase US dollar is working in their favor. Now let's see if trump will abandon global trade. If US stop playing, China debt collector will start knocking demanding payment.
I don't think I am wrong to say you are ignorant about economics!
Your statements are full of contradictions!
First you said:
- When the America stop buying the global goods, the US dollar will become worthless eventually
- So China will liquidate the debt gradually
Then you said:
- Some of the proceed from the treasury sale will buy US assets such as US companies and properties.
Well well, so you are telling us that if China knows USD will become worthless eventually, yet China is still buying US companies and properties (that must be based in USD that will become worthless)? Contradictions indeed! :hopelessness:
U forgotten that hyper inflation will set in
Can you explain how hyper-inflation has to do with:
so you are telling us that if China knows USD will become worthless eventually, yet China is still buying US companies and properties (that must be based in USD that will become worthless)? Contradictions indeed! :hopelessness:
Since you still have not explained about the contradictory statements you made that China thinks USD will become worthless eventually and yet China still so stupid to buy US assets that is based in USD that will become worthless, for what???
U forgotten that hyper inflation will set in
I don't think I am wrong to say you are ignorant about economics!
Your statements are full of contradictions!
First you said:
- When the America stop buying the global goods, the US dollar will become worthless eventually
- So China will liquidate the debt gradually
Then you said:
- Some of the proceed from the treasury sale will buy US assets such as US companies and properties.
Well well, so you are telling us that if China knows USD will become worthless eventually, yet China is still buying US companies and properties (that must be based in USD that will become worthless)? Contradictions indeed! :hopelessness:
Can you explain how hyper-inflation has to do with:
so you are telling us that if China knows USD will become worthless eventually, yet China is still buying US companies and properties (that must be based in USD that will become worthless)? Contradictions indeed! :hopelessness:
Since you still have not explained about the contradictory statements you made that China thinks USD will become worthless eventually and yet China still so stupid to buy US assets that is based in USD that will become worthless, for what???
US assets and properties will be inflated as the US dollar depreciate. Assets will never become worthless, it's only the dollar that become worthless.
So for example China sell US treasury, China get US dollar, China buy US property for 1 million.
China sell more US treasury, China get more US dollar, this time around the value of that property will increase to 1.2 million.
Its only the value of the dollar that declining, the value of assets keep appreciating. Tio bo?
Looks like you are flip-flopping, like what minority like to say, is it "flipping prata"??? :topsy_turvy:
USD becomes worthless (AS YOU CLAIMED), then you buy US assets, how to convert back to home country currency when E.R. = 0?
So, the truth is, USD will NEVER BECOME WORTHLESS (since China so interested in US assets!)! :congratulatory:
So our lesson? Sell SGD and buy USD assets!
US assets and properties will be inflated as the US dollar depreciate. Assets will never become worthless, it's only the dollar that become worthless.
So for example China sell US treasury, China get US dollar, China buy US property for 1 million.
China sell more US treasury, China get more US dollar, this time around the value of that property will increase to 1.2 million.
Its only the value of the dollar that declining, the value of assets keep appreciating. Tio bo?
Looks like you are flip-flopping, like what minority like to say, is it "flipping prata"??? :topsy_turvy:
USD becomes worthless (AS YOU CLAIMED), then you buy US assets, how to convert back to home country currency when E.R. = 0?
So, the truth is, USD will NEVER BECOME WORTHLESS (since China so interested in US assets!)! :congratulatory:
So our lesson? Sell SGD and buy USD assets!
Ok u win...I lose
Another useful read:
http://money.cnn.com/2016/11/23/news/economy/tpp-trump-america-china-russia/index.html?category=economy
I think you all better take these article with a pinch of salt, and read between the lines...........
My opinion is that TPP and etc free trade with US is indeed US's way of influencing the other countries, but in the process US is giving away many goodies to these other countries to buy their support and too much of that has harmed US own economy and their own people (jobs shifted overseas to China, Singapore etc).
So scrapping TPP and renegotiating other free trade agreements will be good for US economy!
If China and Russia is willing to give away many goodies (like US in the past) in order to influence these countries and buy their support, I suppose now the Americans are saying "so be it"!
The Americans now want GOOD US economy, and GOOD US PAY jobs rather than free trade and TPP to give away goodies to other countries!
What does this mean?
It means that is bad news for Singapore (hence dropping SGD), bad for China (hence dropping RMB), good for US (as can be seen, strengthening USD)
- The market already told us all (the BIG BOYS are already acting!
Another useful read:
http://money.cnn.com/2016/11/23/news/economy/tpp-trump-america-china-russia/index.html?category=economy
No worries bro TB, most of us do read with huge pinches of salts.
Financial matters better don't let emotions get into the way.
Happy New Year ahead!
I think you all better take these article with a pinch of salt, and read between the lines...........
My opinion is that TPP and etc free trade with US is indeed US's way of influencing the other countries, but in the process US is giving away many goodies to these other countries to buy their support and too much of that has harmed US own economy and their own people (jobs shifted overseas to China, Singapore etc).
So scrapping TPP and renegotiating other free trade agreements will be good for US economy!
If China and Russia is willing to give away many goodies (like US in the past) in order to influence these countries and buy their support, I suppose now the Americans are saying "so be it"!
The Americans now want GOOD US economy, and GOOD US PAY jobs rather than free trade and TPP to give away goodies to other countries!
What does this mean?
It means that is bad news for Singapore (hence dropping SGD), bad for China (hence dropping RMB), good for US (as can be seen, strengthening USD)
- The market already told us all (the BIG BOYS are already acting!
I think you all better take these article with a pinch of salt, and read between the lines...........
My opinion is that TPP and etc free trade with US is indeed US's way of influencing the other countries, but in the process US is giving away many goodies to these other countries to buy their support and too much of that has harmed US own economy and their own people (jobs shifted overseas to China, Singapore etc).
So scrapping TPP and renegotiating other free trade agreements will be good for US economy!
If China and Russia is willing to give away many goodies (like US in the past) in order to influence these countries and buy their support, I suppose now the Americans are saying "so be it"!
The Americans now want GOOD US economy, and GOOD US PAY jobs rather than free trade and TPP to give away goodies to other countries!
What does this mean?
It means that is bad news for Singapore (hence dropping SGD), bad for China (hence dropping RMB), good for US (as can be seen, strengthening USD)
- The market already told us all (the BIG BOYS are already acting!
Yes..take it easy brother TB. I secretly also want to see the golden age of USA back.
Still don't understand , first get the World into the Gold standard, then remove the Gold standard then quietly print money, than export inflation to the World then export junk paper money then print lot of money and tell the you,"Don't worry no hyper inflation all the printed money removed from circulation" Now tell you I going to get my job back and the World believe.
From US to USed to be...
If they can install Donald Trump as president, they can accept any kind of outcome.
The world on popcorns to watch show as Donald Duck backtracks, sidetracks or crashes America into walls...
http://www.straitstimes.com/opinion/aborting-tpp-erodes-us-global-leadership
http://www.straitstimes.com/opinion/sorry-trump-but-iphones-should-still-be-made-in-china
Still don't understand , first get the World into the Gold standard, then remove the Gold standard then quietly print money, than export inflation to the World then export junk paper money then print lot of money and tell the you,"Don't worry no hyper inflation all the printed money removed from circulation" Now tell you I going to get my job back and the World believe.
Previously like a few days ago when we were talking, US$1 buys you S$1.40.
Now US$1 buys you S$1.43.
Now, this trend of US$ appreciating against S$ is set to continue (regardless of whether you understand and/or you believe or not since those are NOT MATERIAL).............. :onthego:
Still don't understand , first get the World into the Gold standard, then remove the Gold standard then quietly print money, than export inflation to the World then export junk paper money then print lot of money and tell the you,"Don't worry no hyper inflation all the printed money removed from circulation" Now tell you I going to get my job back and the World believe.
Those who have invested in US funds with US$ less than 1.25 will be very happy.
Previously like a few days ago when we were talking, US$1 buys you S$1.40.
Now US$1 buys you S$1.43.
Now, this trend of US$ appreciating against S$ is set to continue (regardless of whether you understand and/or you believe or not since those are NOT MATERIAL).............. :onthego:
Powered by vBulletin® Version 4.2.2 Copyright © 2024 vBulletin Solutions, Inc. All rights reserved.