Economics
Singapore Sees Negative Rates Creep In With Flush Liquidity
- Swap-offer rate fell below zero for the first time since 2011
- Abundant interbank funds a probable cause for falling rates
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Negative interest rates are creeping into Singapore.
The nation’s overnight borrowing rate was less than two basis points above zero on Tuesday, down from the year’s high of 1.68% in January. The one-month swap offer rate, the cost to borrow the city’s currency for dollar investors, fell below zero on Wednesday for the first time in almost nine years.