SG Bonds Weekly – Week of 6 July 2020 July 6, 2020 330

Outlook for the week

  • Last week, on the back of upbeat US economic data, the S&P 500 finished 4% higher before the 4 July holidays. Local bond market activity was relatively muted with no new issuances. This week, we may see some profit-taking with markets awaiting GDP data and our General Election later in the week on 10 July.

 

Key economic releases for the week

  • Tuesday, 7 July 2020: Singapore GDP YoY (8 am)
  • Wednesday, 8-9 July 2020: USMCA Summit (US, Canada, Mexico trade agreement)
  • Thursday, 9 July 2020: US Initial Jobless Claims
  • Friday, 10 July 2020: Singapore General Election (public holiday)

 

Past week: Key events

  • 3 July 2020: Century Sunshine Group announced the default on its S$101.75mn 7% fixed rate bond (CENSUN 7% 3 July 2020 Corp SGD) as it failed to secure refinancing via a HKD300mn convertible bond issue. The bond was issued under the group’s S$300mn multi-currency medium-term note programme established in 2015.
  • Key economic data released: In the US, June total nonfarm payroll beat estimates +4.8mn, unemployment beat estimates falling to 11.1% from 13.3% in May, the ISM Manufacturing Purchasing Managers’ Index (PMI) is back in expansion at 52.6%, and the consumer confidence index rose to 98.1 in June beating estimates of 91.5. In Singapore, June PMI rose 1.2 pts to 48 pts and May retail sales declined 52.1% with worst likely over.

 

 

 

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Timothy Ang
Research Analyst
Phillip Securities Research

Timothy covers credit analysis of local and foreign bonds. Previously an equity dealer, he handled equity trade execution and portfolio management. He has presented seminars for organisations such as SIAS, SPH and IRAS, commentated live market updates for 93.8FM, and authored investment articles for the Business Times newspaper. He graduated with a Bachelor of Commerce in Accounting & Finance from the University of Western Australia.

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