SGD Bonds Monthly – Monthly Outlook: February 2020 February 17, 2020 339

  • Dovish tone by Federal Reserve Chairman Jerome Powell reinforce interest rate stability. Fed funds futures is expecting one rate cut in 2020 to 1.25%-1.5%.
  • In Singapore sectors, we are NEUTRAL on the S-REITs sector with sub-sector preferences: Office and Industrial, and NEUTRAL on Singapore Banks.


Interest rates forecast

FOMC – In the meeting on 29 January 2020, all 10 members of Federal Reserve’s rate-setting panel voted unanimously to hold the rates stable in the range between 1.5% and 1.75%. The dovish tone by Federal Reserve Chairman Jerome Powell during the statement lowers the likelihood of a rate hike. However, the market is even more dovish, which the Fed funds futures predicting at least 1 rate cut this year.

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About the author

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Timothy Ang
Research Analyst
Phillip Securities Research

Timothy covers the US technology sector focusing on hardware companies. Previously a credit analyst, he handled bond analysis and research for the fixed income desk. 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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