SINGAPORE BOND MARKET MECHANICS
Monetary Transmission
SGD Forward Points and Rate Differentials
How interest-rate differentials interact with the forward price of the Singapore dollar.
MECHANISM
FX forward pricing links spot exchange rates, funding rates and market balance-sheet conditions. In SGD, forward points can therefore provide a bridge between currency-market pricing and domestic interest rates.
WHAT TO MONITOR
Compare SGD forward points with relevant money-market differentials and changes in hedging demand.
Primary-source starting points: Monetary Authority of Singapore — Bonds and Bills and Singapore Ministry of Finance — Assets and Liabilities. Source availability varies by mechanism.
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