MAS cannibalizing deposits by issuing S'pore Govt Bonds, interest rate to go up

[Gallego99]

Issue bonds = govt borrowing money from the public.

If interest rates go up, the bond buyers get burnt.

it's a savings bond and 'can be redeemed without penalty at any point'. Interest rates is near zero. Inflation and policy changes would be bigger concerns.

 

[DreamBig]

when it comes to money, the PAP government will surely has a foot in.

 

[blissquek]

This is the right way to cool a property market boom.

The agenda is to flush the liquidity away from property speculation and allow the aunties and ah pek to park their money in another form of investment which is more liquid and neat.

Another point to note is that it may attract funds from small retail investors overseas and make it easily accessible for them to park more money into this laundering hub. But their said intention is to boost the financial center taking on this dirty money risk.

But it may not be good for property holders as they face the danger of a higher mortgage interest payment if the actual effect is the opposite of QE and put pressure on interest rate.

 

[Leckmichamarsch]

This is the right way to cool a property market boom.

the banks have it too good for too long...... borrowing at pathetic interests n lending out at 6% which is really loansharking with govt protection
Govt has complete vested interest to make sure cpf interest stay low so that they can reap 9% return at sgian expense!! Robbers!!!!!!

 

[Papsmearer]

RUN concurs
We need it badly to sustain govt payroll as property revenues (ABSD) and gambling receipts are lower.

U don't need to increase GST. U just need to reduce spending. $13 billion for defense is criminally wasteful.

 

[Dancingking]

serve the banks right. with the pathetic rates they are offering relative to their ridiculous loan rate, time to offer more competitive deposit rates.

 

[frenchbriefs]

why do bond buyers get burnet when interest rate is up, when interest rate is up, yield is also up, that's good for bond holders.

Old bonds fall in value?

 

[mojito]

Old bonds fall in value?

Yes. Open new mee siam stall beside old one, new one give more hum, of course more worth.

 

[GoldenDragon]

U don't need to increase GST. U just need to reduce spending. $13 billion for defense is criminally wasteful.

Bo liao spending for defense is needed to allow the $$$$ to see sunlight.

 

[frenchbriefs]

Issue bonds = govt borrowing money from the public.

If interest rates go up, the bond buyers get burnt.

Sinkies already putting 500b savings in deposit earning 0% interest and 300b in cpf earning 2.5,I dunno how more badly can they get burned.

 

[vomitblood]

interest rate go up deflation sets in huat ar!