As the United States faces a credit downgrade, global investors are turning to Singapore’s AAA-rated MAS bills for stability and yield.
· Discover why Singapore is becoming a haven for global capital
· Learn how MAS bills offer better returns than US Treasuries
· Understand the strategic shift in global finance toward trust and transparency
As the United States grapples with its recent rating getting downgraded, global investors are now turning their attention towards safer and more stable alternatives. And the one-stop destination for such global investors is Singapore, the only Asian sovereign to hold a coveted AAA rating from S&P Global Ratings. With the Monetary Authority of Singapore (MAS) steadily expanding its debt market, MAS is emerging with its bills, which are emerging as a compelling opportunity, especially for those seeking yield and security in uncertain times.
Why Singapore is gaining investor confidence
The downgrade of the US credit rating by Moody’s in May 2025 triggered a wave of concern among global investors as they witnessed the rising national deficit, mounting debt, and political uncertainty . Many are questioning the long-term reliability of US Treasuries. In contrast, prudent fiscal management of Singapore is provides stability, and robust economic fundamentals are also helping Singapore become a beacon of stability.
MAS bills, particularly the three-month tenor, are offer a yield premium of about 13 basis points over comparable US Treasury bills when currency-hedging costs are factored in. This makes them an attractive option for US-based investors looking to diversify their portfolios while maintaining a high credit quality.
The mechanics of the carry trade
The carry trade strategy involves borrowing in a low-yielding currency (like the US dollar) and investing in a higher-yielding one (like the Singapore dollar). Investors can cover their currency
exposure by simultaneously selling and sharing their Singapore dollar in the forward market. This allows them to lock in returns while minimising foreign exchange risk.
According to Eugene Leow, a fixed-income strategist at DBS Bank, MAS bills have always been a popular instrument for such trades. Their appeal has only grown in light of the US downgrade and Singapore’s continued fiscal discipline.
Record demand for MAS bills
Singapore’s debt market is expanding rapidly. As of May 2025, the number of MAS bills outstanding reached a record USD 268.7 billion This surge reflects the government’s efforts to deepen its capital markets and the growing appetite among global investors for AAA-rated assets.
A strategic shift in global finance
The shift toward Singapore is not just about yields – it’s about trust. As the global financial landscape evolves, investors are increasingly prioritise transparency, stability and sound governance. Singapore, with its strong regulatory framework and forward-looking policies, is well-positioned to benefit from this trend.
In a world where financial certainty is becoming a rare commodity, Singapore’s MAS bills offer more than just returns – they offer reassurance.