Singapore SGS Bond

[oceanicmanta]

My application for this SGS is not successful. But I still haven't received the refund. I use UOB. .....a bit strange...Have you received refund?

check later, around 8pm

can share what was your bid ?

 

[findingEva]

check later, around 8pm

can share what was your bid ?

I bid 3.60%

 

[Kayeesha]

Definitely don't look at the closing yield at the top, look under Auction Results.

And when I mouseover the "i"s i see this:

Cut-off Yield - calculated based on the clean price
Cut-off Price - includes accrued interest (i.e. dirty price)

3.56% p.a. and 93.869 - so the cut-off yield is clean but the cut-off price is dirty

The cut-off price is what you would actually pay for the bond (i.e. get a refund of 6.131 per 100). The cut-off yield is like for you to understand what your money is yielding.

In the SGS bond calculator, I choose N520100A, settlement date 4 Sep 2023 and price 93.69, because this input is for clean price. It computes accrued interest as 1.70 and dirty price as hence $93.69 + $0.17 = $93.86. This roughly matches the Auction Result's 93.869 which is the dirty price.

https://www.mas.gov.sg/bonds-and-bi...ore-government-securities/sgs-bond-calculator

Thanks for pointing out the anomaly in the cut-off yield and cut-off price, @lzydata.

 

[findingEva]

My application for this SGS is not successful. But I still haven't received the refund. I use UOB. .....a bit strange...Have you received refund?

So late already, but I still haven't received the refund. Called UOB hotline. They didn't know why, and will call me back tomorrow.

Have you experienced the same?

 

[sglandscape]

So late already, but I still haven't received the refund. Called UOB hotline. They didn't know why, and will call me back tomorrow.

Have you experienced the same?

Refund could take 1-2 working days after the auction date, so not necessarily the evening of the auction date (as with Tbills)

 

[lzydata]

If the Cut Off Yield is actually based on Clean Price, does it mean the "Actual Yield" is lower, since investor had paid the accrued interest upfront ?

As I see it, this is the way the bond is sold, on this date with the accrued interest, so there's no point asking what's the actual yield. If we could buy it on a coupon date, no accrued interest, then it would be easier.

 

[Nofear40]

I can’t remember my bid.. lol
But I just checked that there is no cpf deduction yet
So I suppose that if it is successful, it will be deducted ?

 

[lzydata]

THE second public offer of Singapore’s sovereign green bonds was not popular among retail investors, with applications totalling S$3.8 million out of S$50 million on offer.

This puts the subscription rate at about 0.08 times the amount offered to retail investors, according to a notice by the Monetary Authority of Singapore (MAS) on Wednesday (Aug 30).

https://www.businesstimes.com.sg/es...-s38-million-s50-million-retail-tranche-taken
Haha

 

[vsvs24]

THE second public offer of Singapore’s sovereign green bonds was not popular among retail investors, with applications totalling S$3.8 million out of S$50 million on offer.

This puts the subscription rate at about 0.08 times the amount offered to retail investors, according to a notice by the Monetary Authority of Singapore (MAS) on Wednesday (Aug 30).

https://www.businesstimes.com.sg/es...-s38-million-s50-million-retail-tranche-taken
Haha

Is this a record low ?

I won't be alive by the time it mature. 3.04% might as well placed in SSB which is higher and more liquid.

Why they expect this to be popular amongst retail investors

 

[lzydata]

Is this a record low ?

I won't be alive by the time it mature. 3.04% might as well placed in SSB which is higher and more liquid.

Why they expect this to be popular amongst retail investors

I guess it wouldn't look nice if it were only offered to institutional investors

 

[highsulphur]

Anyone applying for the 30Y reopening auction?

 

[reddevil0728]

Anyone applying for the 30Y reopening auction?

30y is going to be like some eternity to many people. are you getting? how much you applying and what you bidding?

 

[highsulphur]

Think applying non com at 3.1%

Why need to pay 115% of notional amount when bond is trading 75 cents to the dollar?

 

[reddevil0728]

Think applying non com at 3.1%

non comp cannot bid what.

Why need to pay 115% of notional amount when bond is trading 75 cents to the dollar?

because it's an auction. and anything can technically happen during the auction. hence they just set aside 115%

 

[highsulphur]

non comp cannot bid what.

because it's an auction. and anything can technically happen during the auction. hence they just set aside 115%

Sorry I meant comp bid

If comp bid, technically shouldn't have to set aside additional 15%

May put some just to see how it works

 

[reddevil0728]

Sorry I meant comp bid

If comp bid, technically shouldn't have to set aside additional 15%

May put some just to see how it works

i believe they just default the system to that

 

[highsulphur]

i believe they just default the system to that

Really silly especially for an issue whose price is so much below par at the moment

 

[lzydata]

Sorry I meant comp bid

If comp bid, technically shouldn't have to set aside additional 15%

May put some just to see how it works

Can try, go for it

 

[reddevil0728]

Really silly especially for an issue whose price is so much below par at the moment

I think it’s like the case of T-Bill application with CPF isn’t a thing to bother about digitalising until the past year because no sensible person would do it.

same for sgs, too long dated for most retailers, hence they just go with the default so less config required.

 

[highsulphur]

2 year bond reopening. Anyone applying