Will rising US Treasury yields push up your mortgage? | Money Talks

Rising US Treasury yields, currently at their highest levels since 2007, signal an end to the era of cheap money, driven primarily by significant US fiscal deficits and mounting national debt. Paras Gupta, Head of Investment Services at UBP, explains that while these yields influence global markets, the transmission to Singaporean mortgages and businesses is indirect and occurs with a notable lag. Unlike the US, Singapore’s short-term interest rates are governed by domestic liquidity and the Singapore Overnight Rate Average (SORA). Consequently, while capital-intensive sectors like real estate and infrastructure face increased refinancing pressures, the impact on consumers remains gradual. Investors in REITs currently navigate multiple headwinds, including higher borrowing costs and competition from government bonds, yet these assets remain income-focused. Ultimately, maintaining a long-term perspective, avoiding panic, and stress-testing personal financial assumptions remain the most effective strategies for navigating this volatile environment.