Latest Change USD/SGD 1.3072 +0.0020 Overnight Rate 0.03% -3 bps 2-Year Bond Yield 0.17% Unchanged 10-Year Bond Yield 1.63% -1 bp 2-Year Swap Offer 0.57% +2 bps 10-Year Swap Offer 2.12% -1 bp 2-10-Year Swap Curve 155 bps -3 bps SINGAPORE (Dow Jones)--The Singapore dollar was lower late Thursday as investor sentiment worsened following poor demand at a German government bond auction overnight, which indicated that the bigger European economies may be taking a direct hit from the region's sovereign-debt crisis. The disappointingly weak demand at the auction spooked financial markets, lifting the U.S. dollar, considered a safe-haven currency, to a seven-week high of S$1.3130 early in the Asian session. However, the Singapore dollar later recovered part of its losses. Toward the end of the session, the U.S. dollar was quoted at S$1.3072, compared with S$1.3052 around the same time on Wednesday. Traders and analysts said the unpredictability is likely to stay in the near term. "The Singapore dollar is following the majors and all the action is in Europe. The volatility is likely to continue in the overseas session," said a dealer at a regional bank. He tipped the U.S. dollar to trade between S$1.3150 and S$1.3050. The local currency's movements nearly mirrored those of the euro, which recouped early losses in Asia Thursday but stayed fragile as the U.S. dollar retained its strength amid growing global uncertainty. Singapore government bonds were little changed as traders waited for greater clarity on the Europe situation. The yield on the two-year paper was unchanged at 0.17% while that on the 10-year bond edged down one basis point, or a hundredth of a percentage point, to 1.63%, in line with the moves by U.S. Treasurys overnight. -By Gaurav Raghuvanshi; Dow Jones Newswires; +65 64154 154; gaurav.raghuvanshi@dowjones.com

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