Oct FOMC Meeting Likely to Cut Fed Rate by 25bp; Singapore’s GDP Expected to More than Double by 2040【CSOP Fixed Income Weekly】

CSOP AML
10-28

【SRT】

As of 24 Oct 2024 (Fri), SRT was up 2.04% WTD in SGD, and rose 15.86% YTD in SGD. WTD gains were attributable to industrial, office and data centre by subsector and MLT, KDCREIT, and KREIT by individual REIT.

Morgan Stanley (MS) expects Singapore REITs' 3Q25 updates to focus on operational highlights over granular financials. While MS does not anticipate much DPU surprises, some REITs have the ability to supplement DPU with divestment gains. MS expects resilient rent reversions in Singapore which contrasts with overseas softness.

$CSOP iEdge SREIT ETF S$(SRT.SI)$ 2025 YTD Total Return: +15.86%

【MMF】

On 24 Oct 2024 (Fri), September's core CPI rose 0.23% MoM, below forecasts, and JPM estimates core PCE at +0.20% MoM, supporting the case for upcoming rate cuts. Early QT termination may slightly lower yields, but JPM expects little change in its overall rate view. At this week's Oct FOMC meeting, with limited economic data due to the government shutdown, JPM and HSBC anticipate a 25bp rate cut following the softer September CPI.

We expect $CSOP USD Money Market Fund (SGXZ96797238.MF)$ to continue to deliver stable yield in the near term. As of 2025/10/24, the fund has a net yield at 3.97%. ^

$MMF Net 7-day Yield: +3.97%

^ 7-day net yield is calculated based on calendar days and NAVs in 5-decimal.

【CN】

China's Fourth Plenum wrapped up, outlining a Five-Year Plan focused on industrial and technological advancement amid global uncertainties. With no new market drivers, equity volumes have retreated (five-day average now below RMB1.8trn vs RMB2.3trn a week ago), benefiting bonds as fears of bond-to-equity rotation diminish.

HSBC noted that valuations of 30Y CGBs have cheapened notably in recent months. Money market rates remain low and stable; slight tightening is possible in the coming week from tax repayment deadlines and month-end, but central bank liquidity measures should prevent significant funding stress. $ICBC CSOP CGB ETF S$(CYC.SI)$ $ICBC CSOP CGB ETF US$D(CYB.SI)$ $ICBC CSOP CGB ETF US$A(CYX.SI)$

Looking at YTD performance as of 2025/10/24, CYC/CYB’s NAV gained +0.22% in CNY and gained +2.69% in USD*.

* CYC/CYB/CYX USD NAV is converted based on benchmark FX, subject to rounding error

Global Market Outlook

【SG】Singapore’s Sep CPI Exceeded Expectations; DBS Projects Singapore GDP to More Than Double by 2040  

Singapore’s September CPI exceeded expectations at 0.7% YoY for headline inflation (vs 0.6% expected) and 0.4% for core (vs 0.2% expected). Economists expect modest further increases in inflation. September’s core inflation was driven by higher retail and goods prices, and headline inflation was pushed up by private transport and core CPI components. Overall inflation is expected to average 0.5% to 1% in 2025, and 0.5% to 1.5% in 2026, said MAS and MTI.

Looking ahead, in DBS Singapore 2040 report, DBS expects Singapore GDP to more than double from USD547bn in 2024 to USD1.2–1.4tn by 2040, anchored by capital accumulation, human capital, and productivity gains.

【US】25bp Rate Cut Expected at Fed’s Oct FOMC Meeting

Looking ahead to Fed’s Oct FOMC meeting, a 25bp Fed rate cut is broadly expected, especially after softer September CPI data. $S&P 500(.SPX)$ $NASDAQ(.IXIC)$

Source: CSOP, Bloomberg, and HSBC, as of 2025/10/24, except where otherwise stated.

Disclaimer

The investment product(s), as mentioned in this document, is/are registered under section 286 of the Securities and Futures Act (Cap. 289) of Singapore (the “SFA”). This material and the information contained in this material shall not be regarded as an offer or solicitation of business in any jurisdiction to any person to whom it is unlawful to offer or solicit business in such jurisdictions. This document is not to be construed as recommendations to buy/sell any above-mentioned securities, or any securities in the above-mentioned sectors or jurisdictions.

CSOP Asset Management Pte. Ltd. (“CSOP”) which prepared this document believes that information in this document is based upon sources that are believed to be accurate, complete, and reliable. However, CSOP does not warrant the accuracy and completeness of the information and shall not be liable to the recipient or controlling shareholders of the recipient resulting from its use. CSOP is under no obligation to keep the information up to date. The provision of this document shall not be deemed as constituting any offer, acceptance, or promise of any further contract or amendment to any contract. The information herein shall not be disclosed, used, or disseminated, in whole or part, and shall not be reproduced, copied, or made available to others without the written consent of CSOP.

Advice should be sought from a financial adviser regarding the suitability of the investment and/or investment product before making an investment. Investment involves risk. The value of investments, and the income from them, can go down as well as up and an investor may get back less than the amount invested. Past performance is not necessarily indicative of future performance. Investor should read the prospectus and product highlights sheet, which can be obtained on CSOP website or authorized participating dealers, before deciding whether to invest. This document has not been reviewed by the Monetary Authority of Singapore.

 

Index Provider Disclaimer

SRT

The CSOP iEdge S-REIT Leaders Index ETF is not in any way sponsored, endorsed, sold or promoted by Singapore Exchange Limited and/or its affiliates (collectively, “SGX”) and SGX makes no warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the iEdge S-REIT Leaders Index and/or the figure at which the iEdge S-REIT Leaders Index stand at any particular time on any particular day or otherwise. The iEdge S-REIT Leaders Index are administered, calculated, and published by SGX. SGX shall not be liable (whether in negligence or otherwise) to any person for any error in the CSOP iEdge S-REIT Leaders Index ETF and the iEdge S-REIT Leaders Index and shall not be under any obligation to advise any person of any error therein. “SGX” is a trademark of SGX and is used by CSOP under license. All intellectual property rights in the iEdge S-REIT Leaders Index vest in SGX.

 

CYC/CYB/CYX

The ICBC CSOP FTSE Chinese Government Bond Index ETF (the “ETF”) has been developed solely by CSOP Asset Management Pte. Ltd. The ETF is not in any way connected to or sponsored, endorsed, sold, or promoted by the London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). FTSE Russell is a trading name of certain of the LSE Group companies. All rights in the FTSE Chinese Government Bond Index (the “Index”) vest in the relevant LSE Group company which owns the Index. FTSE® is a trademark of the relevant LSE Group company which own the Index and is used by any other LSE Group company under license. The Index is calculated by or on behalf of FTSE International Limited or its affiliate, agent, or partner. The LSE Group does not accept any liability whatsoever to any person arising out of (a) the use of reliance on or any error in the Index or (b) investment in or operation of the ETF. The LSE Group does not accept any liability whatsoever to any person arising out of the use of the ETF or the underlying data. The LSE Group makes no claim, prediction, warranty, or representation either as to the results to be obtained from the ETF or the suitability of the Index for the purpose to which it is being put by CSOP Asset Management Pte. Ltd.

 

SG Earnings Season: Share Your 1-Sentence Insight!
Several major companies are reporting earnings this week — which SG company are you keeping an eye on? Join the SG earnings season company reporting event and earn 10 Tiger Coins! Each different company you comment on earns 10 Tiger Coins. Share a one-sentence comment with your view on the company’s earnings, for example: “ $UOB(U11.SI)$ net profit plunged due to early provisions — a 3% drop in one day feels like a buying opportunity?” “ $SingPost(S08.SI)$’s core business profit continues to decline, with year-to-date performance at -7% — still waiting and watching.”
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • Shenpwe
    10-28
    Shenpwe
    Great insights and analysis! Keep it coming! [Wow]
  • pizzix
    10-28
    pizzix
    Great insights on SRT's performance! [Applaud]
  • gxlzzzkJames
    10-28
    gxlzzzkJames
    不可能降息!
Leave a comment
3
4