Singapore's Government Bond Yield Curve Has Scope to Flatten, DBS Says
0239 GMT — Singapore's government bond yield curve has scope to flatten, DBS Group Research analysts say in a note. First, the recent price rally of short-dated government securities may have 'gone too far too fast,' the analysts say. Second, if local rates remain low and U.S. dollar stays persistently weak, there would likely be investor interest in extending duration.
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Yahoo
9 hours ago
- Yahoo
US asks China to stop Iran from closing Strait of Hormuz
US Secretary of State Marco Rubio has called on China to prevent Iran from closing the Strait of Hormuz, one of the world's most important shipping routes. His comments came after Iran's state-run Press TV reported that their parliament had approved a plan to close the Strait but added that the final decision lies with the Supreme National Security Council. Any disruption to the supply of oil would have profound consequences for the global economy. China in particular is the world's largest buyer of Iranian oil and has a close relationship with Tehran. Oil prices have surged following the US' attack, with the price of the benchmark Brent crude reaching its highest level in five months. "I encourage the Chinese government in Beijing to call them (Iran) about that, because they heavily depend on the Straits of Hormuz for their oil," Marco Rubio had said in an interview with Fox News on Sunday. "If they [close the Straits]... it will be economic suicide for them. And we retain options to deal with that, but other countries should be looking at that as well. It would hurt other countries' economies a lot worse than ours." Around 20% of the world's oil passes through the Strait of Hormuz, with major oil and gas producers in the Middle East using the waterway to transport energy from the region. Any attempt to disrupt operations in the Strait could could send global oil prices skyrocketing. They jumped to their highest since January, with the price of Brent crude reaching $78.89 a barrel as of 23:22 GMT Sunday. "The US is now positioned with an overwhelming defence posture in the region to be prepared for any Iran counter attacks. But the risk for oil prices is the situation could escalate severely further," said Saul Kavonic, Head of Energy Research at MST Financial. The cost of crude oil affects everything from how much it costs to fill up your car to the price of food at the supermarket. China in particular buys more oil from Iran than any other nation - with its oil imports from Iran surpassing 1.8 million barrels per day last month, according to data by ship tracking firm Vortexa. Energy analyst Vandana Hari has said Iran has "little to gain and too much to lose" from closing the Strait. "Iran risks turning its oil and gas producing neighbours in the Gulf into enemies and invoking the ire of its key market China by disrupting traffic in the Strait", Hari told BBC News. The US joined the conflict between Iran and Israel over the weekend, with President Donald Trump saying Washington had "obliterated" Tehran's key nuclear sites. However, it's not clear how much damage the strikes inflicted, with the UN's nuclear watchdog saying it was unable to assess the damage at the heavily fortified Fordo underground nuclear site. Iran has said there was only minor damage to Fordo. Trump also warned Iran that they would face "far worse" future attacks if they did not abandon their nuclear programme. On Monday, Beijing said the US' attack had damaged Washington's credibility and called for an immediate ceasefire. China's UN Ambassador Fu Cong said all parties should restrain "the impulse of force... and adding fuel to the fire", according to a state-run CCTV report. In an editorial, Beijing's state newspaper Global Times also said US involvement in Iran "had further complicated and destabilized the Middle East situation" and that it was pushing the conflict to an "uncontrollable state".
CNBC
9 hours ago
- CNBC
Gold subdued as dollar gains, markets await Iran response
Gold prices edged lower on Monday as investors favored the dollar following the U.S. attack on key Iranian nuclear sites over the weekend, with markets closely watching for Iran's response. Spot gold was down 0.2% at $3,362.29 an ounce, as of 0341 GMT. U.S. gold futures fell 0.2% to $3,378. "The US strikes on Iranian nuclear facilities resulted in the dollar receiving safe haven buying flows in the currency market," KCM Trade Chief Market Analyst Tim Waterer said. "This USD uptick had pegged gold back and caused an uncharacteristically subdued performance from the precious metal despite risks stemming from the conflict." The dollar rose 0.2% against its rivals, making gold more expensive for other currency holders. USD/ U.S. President Donald Trump on Sunday raised the question of a regime change in Iran following U.S. strikes against key military sites over the weekend, as senior officials in his administration warned Tehran against retaliation. Iran vowed to defend itself a day after the U.S. dropped 30,000-pound bunker-buster bombs onto the mountain above Iran's Fordow nuclear site. Meanwhile, Iran and Israel continued to trade volleys of missile attacks. An Israeli military spokesperson said Israeli fighter jets had struck military targets in western Iran. Shares slipped in Asia on Monday and oil prices briefly hit five-month highs, but there were no signs of panic selling across markets. The Federal Reserve's latest monetary policy report to Congress, released on Friday, said U.S. inflation remained somewhat elevated and the labor market was solid. On the technical front, spot gold may retest support at $3,348 per ounce, a break below could open the way toward $3,324, according to Reuters technical analyst Wang Tao. Elsewhere, spot silver rose 0.2% at $36.07 per ounce, platinum edged 0.1% higher to $1,269.17, while palladium gained 0.2% to $1,046.62.
CNBC
9 hours ago
- CNBC
Oil hits five-month high after U.S. attacks key Iranian nuclear sites
Oil prices jumped on Monday to their highest since January as the United States' weekend move to join Israel in attacking Iran's nuclear facilities stoked supply worries. Brent crude futures was up $1.92 or 2.49% at $78.93 a barrel as of 0117 GMT. U.S. West Texas Intermediate crude advanced $1.89 or 2.56% to $75.73. Both contracts jumped by more than 3% earlier in the session to $81.40 and $78.40, respectively, touching five-month highs before giving up some gains. The rise in prices came after U.S. President Donald Trump said he had "obliterated" Iran's main nuclear sites in strikes over the weekend, joining an Israeli assault in an escalation of conflict in the Middle East as Tehran vowed to defend itself. Iran is OPEC's third-largest crude producer. Market participants expect further price gains amid mounting fears that an Iranian retaliation may include a closure of the Strait of Hormuz, through which roughly a fifth of global crude supply flows. Iran's Press TV reported that the Iranian parliament had approved a measure to close the strait. Iran has in the past threatened to close the strait but has never followed through on the move. "The risks of damage to oil infrastructure ... have multiplied," said Sparta Commodities senior analyst June Goh. Although there are alternative pipeline routes out of the region, there will still be crude volume that cannot be fully exported out if the Strait of Hormuz becomes inaccessible. Shippers will increasingly stay out of the region, she added. Goldman Sachs said in a Sunday report that Brent could briefly peak at $110 per barrel if oil flows through the critical waterway were halved for a month, and remain down by 10% for the following 11 months. The bank still assumed no significant disruption to oil and natural gas supply, adding global incentives to try to prevent a sustained and very large disruption. Brent has risen 13% since the conflict began on June 13, while WTI has gained around 10%. The current geopolitical risk premium is unlikely to last without tangible supply disruption, analysts said. Meanwhile, the unwinding of some long positions accumulated following a recent price rally could cap an upside to oil prices, Ole Hansen, head of commodity strategy at Saxo Bank, wrote in a market commentary on Sunday.
