2012.05.24 10:15:51 Singapore Dollar Tad Down Late; Euro-Zone Summit Disappoints

Latest Change USD/SGD 1.2770 +0.0009 Overnight Rate 0.03% -3 bps 2-Year Bond Yield 0.25% +1 bp 10-Year Bond Yield 1.48% -1 bp 2-Year Swap Offer 0.63% -1 bp 10-Year Swap Offer 2.00% -1 bp 2-10-Year Swap Curve 137 bps unchanged SINGAPORE (Dow Jones)--The Singapore dollar was marginally weaker late Thursday as a much-anticipated European Union summit failed to produce any substantial proposals to stem the increasing instability afflicting the region's politics and economics. "The only thing that is certain is that there is still uncertainty...the Singapore dollar is still under a lot of pressure and the risks are still more toward the downside than the upside," UOB economist Suan Teck Kin said. The summit, held in Brussels, failed to boost sentiment in financial markets and only appeared to highlight differences between European leaders with the new Socialist President of France, Francois Hollande, pushing for the introduction of common European debt, which German Chancellor Angela Merkel believes could lead to fiscal laxity among weaker members of the euro zone. Suan expects the U.S. currency to trade in a S$1.2700-to-S$1.2828 for now. Singapore government bond yields were largely unchanged as investors awaited more clarity on euro-zone policy deliberations. -By Sam Holmes, Dow Jones Newswires; +65-6415-4157; samuel.holmes@dowjones.com (END) Dow Jones Newswires May 24, 2012 04:15 ET (08:15 GMT)