SINGAPORE BOND MARKET MECHANICS
SORA & OIS
From Daily SORA Fixings to Compounded Rates
How daily SORA observations become multi-day compounded interest rates.
MECHANISM
Daily overnight observations can be compounded over an interest period to produce the realised floating-rate leg used in many SGD contracts. The path of overnight rates therefore matters, not only the final fixing.
WHAT TO MONITOR
Watch daily SORA, compounding period, observation conventions and the difference between realised and forward-looking market pricing.
Primary-source starting points: Monetary Authority of Singapore — Bonds and Bills and Singapore Ministry of Finance — Assets and Liabilities. Source availability varies by mechanism.
← ALL SINGAPORE MECHANICS