Singapore Treasury bills (T-bills)

[digisales]

SGS bonds and T-bills are very much the same, except for the duration. am i right?

 

[reddevil0728]

SGS bonds and T-bills are very much the same, except for the duration. am i right?

See this

https://www.mas.gov.sg/bonds-and-bills/products-for-individuals

 

[lzydata]

there are 4 times a year where 1y and 6m auctions happening at the same time.

if one is deciding at that time whether to 1y or 6m, would be a useful comparison right? or am i missing something.

trying to get to a more apple to apple comparison.

There are just two data points so far this year, below is the auction date:

20 Jan 2022:
BS22101H 6 months: 0.48% pa
BY22100W 1 year: 0.75% pa

13 Apr 2022:
BS22107A 6 months: 1.32% pa
BY22101N 1 year: 2% pa

So yes there tended to be a bigger difference at the auctions.

You can also interpret this as saying that as rates are going up rapidly, someone who buys the 6 months T-bill will be able to re-invest it in a fresh 6 months T-bill at a much higher rate, compared to someone who buys the 1 year T-bill and holds it for 1 year.

 

[digisales]

See this

https://www.mas.gov.sg/bonds-and-bills/products-for-individuals

yup, this is what i am reading. so my summary is the main difference is on the duration. hope i am right

 

[reddevil0728]

yup, this is what i am reading. so my summary is the main difference is on the duration. hope i am right

eh no?

how it works fundamentally already different.

 

[stephenbishop]

Creating a separate thread for SGS T-bills instead of mixing discussion with the likes of SSB.

You don't want to discuss SGS Bonds in your thread?

 

[reddevil0728]

You don't want to discuss SGS Bonds in your thread?

More for Tbill, but like with any other threads, if there’s cross over, let it be.

but I guess sgs bonds will be less common?

 

[stephenbishop]

More for Tbill, but like with any other threads, if there’s cross over, let it be.

Noted...

 

[stephenbishop]

but I guess sgs will be less common?

You mean SSB will be less common? If so, agreed.

 

[jayou8]

There are just two data points so far this year, below is the auction date:

20 Jan 2022:
BS22101H 6 months: 0.48% pa
BY22100W 1 year: 0.75% pa

13 Apr 2022:
BS22107A 6 months: 1.32% pa
BY22101N 1 year: 2% pa

So yes there tended to be a bigger difference at the auctions.

You can also interpret this as saying that as rates are going up rapidly, someone who buys the 6 months T-bill will be able to re-invest it in a fresh 6 months T-bill at a much higher rate, compared to someone who buys the 1 year T-bill and holds it for 1 year.

Interesting thing about the daily SGS Prices published. Did my eyes crossed and see inverted yields?

Treasury Bills

6-Mth

1-Year

Issue Code Coupon Rate Maturity Date	BS22112V 27 Dec 2022	BY22101N 18 Apr 2023

23 Jun 2022

2.27

2.18

 

[reddevil0728]

You mean SSB will be less common? If so, agreed.

Sgs bond.

SSB already in another thread.

 

[stephenbishop]

Sgs bond.

Understood.

I think retail interest in short term (less than 3 years) SGS Bonds is probably quite high judging from the level of non-competitive bids for these SGS Bonds at auctions compared with the very low level of non-competitive bids for SGS T-bills. But must (and am happy to) respect your wishes as you are the OP and not go OT.

 

[reddevil0728]

Understood.

I think retail interest in short term (less than 3 years) SGS Bonds is probably quite high judging from the level of non-competitive bids for these SGS Bonds at auctions compared with the very low level of non-competitive bids for SGS T-bills. But must (and am happy to) respect your wishes as you are the OP and not go OT.

Created this thread cause a lot of discussion of Tbill in the ssb one.

don’t see much discussion about sgs bonds.

but if someone wants to talk about it don’t see why not

 

[stephenbishop]

Created this thread cause a lot of discussion of Tbill in the ssb one.

don’t see much discussion about sgs bonds.

but if someone wants to talk about it don’t see why not

SGS T-bills have some more attractive features compared with SGS Bonds - they are much shorter term, investors get the discount upfront and don't have to incur the 15% deposit "penalty" for reopened bonds.

 

[reddevil0728]

SGS T-bills have some more attractive features compared with SGS Bonds - they are much shorter term, investors get the discount upfront and don't have to incur the 15% deposit "penalty".

But the 15% is for reopen bonds right?

for brand new is there such “penalty”?

 

[stephenbishop]

But the 15% is for reopen bonds right?

for brand new is there such “penalty”?

You are correct - only for reopened bonds. My apologies for not being more clear. I have edited my original post to clarify.

 

[digisales]

eh no?

how it works fundamentally already different.

think i will need to read and understand more

 

[reddevil0728]

think i will need to read and understand more

One pays a coupon for the yield, the other is purchased at a discount if the face value??? Which I already mentioned above?

 

[sohguanh]

SGS T-bills have some more attractive features compared with SGS Bonds - they are much shorter term, investors get the discount upfront and don't have to incur the 15% deposit "penalty" for reopened bonds.

Another point is for SGS bonds that is new is 10 years if want to sell in SGX no buyers and trade with dealer banks also troublesome etc. T-bill has short tenure so just hold to maturity monies come back. SSB also 10 years but every month can redeem just pay $2 able to sell off get monies back. In this context I prefer T-bill and SSB over SGS bonds. This is my own opinion of cuz.

 

[sohguanh]

Interesting thing about the daily SGS Prices published. Did my eyes crossed and see inverted yields?

Treasury Bills

6-Mth

1-Year

Issue Code Coupon Rate Maturity Date	BS22112V 27 Dec 2022	BY22101N 18 Apr 2023

23 Jun 2022

2.27

2.18

The auction date is impt. BS2212V is done on 23 Jun 2022 whereas BY22101N is done on 13 Apr 2022. Since on different dates of cuz the yield is different. I am trying to find a closest auction date for both 6 and 12 months T-bill for more meaningful comparison.

BY22102V 12 month auction date is 21 July 2022 and BS22114E 6 months also 21 July 2022 SAME DAY!!! Closest 6 month would be BS22113A at 07 Jul 2022 so maybe use the results of 07 Jul 2022 to predict for the 12 months on 21 July 2022?

Anyone sharing say for same 10K how would you split between the 6 months and 12 months T-bill for July?