SGX Derivatives announced the upcoming launch of Asia Pacific Government Bond Futures, available for trading on 20 April. The new contracts are designed to enable international investors to manage sovereign interest rate risk associated with their existing allocations across India, Indonesia, Malaysia, Thailand and the Philippines. The contracts are the first exchange-listed regional government bond futures to be quoted on Singapore Exchange Limited, margined and settled in USD, providing investors with a transparent and standardised instrument to hedge sovereign rate risk within the currency framework most commonly used in global portfolio management.
Built on FTSE Russell?s newly launched Asia Pacific Liquid Government Bond Index Series, which is derived from the methodology of its globally recognised government bond index family, the futures reference baskets of government bonds across the five markets and are offered across three maturities ? 3-year, 5-year, and 10-year ? giving investors flexible control over duration and sovereign yield curve exposures.
The launch builds on Singapore Exchange Limited?s multi-asset derivatives platform across commodities, equities, interest rates and FX. The addition of these new products expands Singapore Exchange Limited?s product shelf to include sovereign rate exposure, strengthening its role as a central venue for managing regional risk within global portfolios.
