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Stock impact report

Singapore, US Swap Gap Set to Narrow as MAS Policy Shift Nears [Yahoo! Finance]

Nomura Holdings Inc ADR American Depositary Shares (NMR) 
US:NYSE Investor Relations: nomuraholdings.com/investor
Company Research Source: Yahoo! Finance
(Bloomberg) -- Singapore's unusual approach to monetary policy will give traders a chance to profit from a narrowing gap between the local currency and US dollar interest-rate swaps. Most Read from Bloomberg The difference between two-year overnight indexed swap rates in the two currencies is near the tightest level in more than a year, allowing traders to profit from receiving fixed rate payments in the greenback and paying in Singapore dollars. That trade looks set to become even more profitable as the Monetary Authority of Singapore gets closer to its own version of policy easing, following the Federal Reserve's pivot to rate cuts. “The spread between the two swap rates will narrow further if the Monetary Authority of Singapore eases its own monetary policy,” said Frances Cheung, head of foreign-exchange and rates strategy at Oversea-Chinese Banking Corp. “We cannot rule out a policy shift happening as early as at the October meeting should core inflation ease more.” Unlik Show less Read more
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