Singapore Savings Bond 2019 Jan offers investors 2.01% to 2.90%pa interest, or an annualised 2.45%pa over 10 years.

2 key developments have shaped bond markets since Nov 2018. And they both point to lower interest rates, higher bond prices.

First, US Federal Reserve Chief Jerome Powell suggested that the rate hikes may slow, causing bond yields to fall. You can read his full comments made on 28 Nov here. That was a departure from the hawkish tone the central bank had maintained while accelerating rate hikes throughout this year.

Second, the US yield curve inverted for the first time since a decade on 4 Dec. The yield spread between 3 and 5-year treasuries turned negative. The yield curve had been flattening for some time in 2018 but an inversion is more serious; it points to a coming recession. Another important implication is that short term yields may rise while long term yields