Latest Change USD/SGD 1.2774 -0.0051 Overnight Rate 0.05% -8 bps 2-Year Bond Yield 0.31% +2 bps 10-Year Bond Yield 1.59% Unchanged 2-Year Swap Offer 0.58% -1 bp 10-Year Swap Offer 2.05% +1 bp 2-10-Year Swap Curve 147 bps +2 bps SINGAPORE (Dow Jones)--The Singapore dollar strengthened against the U.S. dollar Thursday as risk sentiment rallied due to positive developments in efforts to tackle the euro-zone debt crisis. News that the International Monetary Fund is seeking US$500 billion in new lending capacity and talks between the Greek government and private-sector creditors have resumed provided some cause for cheer, analysts said. The U.S. dollar drifted as low as S$1.2758 from S$1.2825 late Wednesday, but its downward momentum eased late in the session. "We attribute the move in the (U.S.) dollar to a euro short squeeze and an increase in risk sentiment, though the choppy trading suggests not everyone holds this view," Maybank said. While the Greek debt talks remain in focus, OCBC said the "Spanish and French bond auctions will be the key events to watch today, although the positive reception to European bill/bond auctions this week may already have primed markets for further optimism." The house tipped the U.S. dollar to trade in a S$1.2700-S$1.2800 range for this session. Singapore government bonds fell slightly across the curve as investors continue to favor risk assets amid improving sentiment. -By Chun Han Wong, Dow Jones Newswires; +65 64154 160; chunhan.wong@dowjones.com

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