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Singaporean bonds rise on sluggish Q2 GDP growth

The Singaporean government bonds gained on Thursday after reading weaker than expected second quarter Gross Domestic Product (GDP), creating pressure on the central bank for a further policy easing in the wake of lacklustre global demand and Brexit turmoil.

The 10-year bonds yield, which moves inversely to its price fell, 1 basis point to 1.742 percent, 5-year bonds yield dipped 2 basis points to 1.349 percent and the super-long 20-year bonds yield slid more than 1 basis point to 2.110 percent by 06:00 GMT.

The second quarter GDP rose 0.8 percent q/q, against market expectations of 0.9 percent growth, from 0.2 percent in the first quarter of 2016. This modest growth is majorly driven by the fallout of UK from the European Union last month.

On an annual basis, it also inched modestly 2.2 percent y/y, the consensus was for 2.1 percent y/y, as compared to prior 2.1 percent.

Lastly, investors will remain keen to focus on the retail sales data, which is scheduled for Friday at 05:00 GMT. Meanwhile, The Straits Times Index (STI) traded down 0.13 percent at 2,906.81 points by 06:00 GMT.

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