Singapore SGS Bond

[reddevil0728]

is it the same as buying reopened SGS? i.e. the coupon rate is not fixed/final until auction.

Coupon rate is always fixed? Just the yield will vary via price

 

[maumu]

Coupon rate is always fixed? Just the yield will vary via price

yeah, sorry I meant the yield.

 

[lzydata]

is it the same as buying reopened SGS? i.e. the coupon rate is not fixed/final until auction.

Yes, should be like reopened SGS. The coupon is fixed, the yield is not fixed until auction.

 

[Potent]

Anyone interested in the 5 yeaR sgs reopen, N524100X. Expiry 2029 April meaning left 4 years eh.
N524100X is a 3% bond yah?
If apply by the dateline we enjoying at 3% or the dirty money we paid, is the difference between the 3% and the accepted yield?

 

[ericcsn]

Anyone interested in the 5 yeaR sgs reopen, N524100X. Expiry 2029 April meaning left 4 years eh.
N524100X is a 3% bond yah?
If apply by the dateline we enjoying at 3% or the dirty money we paid, is the difference between the 3% and the accepted yield?

The latest bid price is 103.3,
https://eservices.mas.gov.sg/statistics/fdanet/BondOriginalMaturities.aspx?type=N5.

At this bid price, the effective yield (including all your future 3% coupons and the maturity sum) is just 2.1%.

No free lunch unless you are happy at this sort of returns (better off with cpf).

 

[lzydata]

Anyone interested in the 5 yeaR sgs reopen, N524100X. Expiry 2029 April meaning left 4 years eh.
N524100X is a 3% bond yah?
If apply by the dateline we enjoying at 3% or the dirty money we paid, is the difference between the 3% and the accepted yield?

For auctions of reopened bonds, the coupon is already fixed - 3% for this one - and you bid the yield that you can accept. They will deduct 115% of the amount you bid for and then after the auction result is out refund you the balance. As the amount paid for is likely above 100, the yield will likely be around 2.1% pa which is in line with market yields (see MAS benchmark daily SGS prices).

 

[Potent]

For auctions of reopened bonds, the coupon is already fixed - 3% for this one - and you bid the yield that you can accept. They will deduct 115% of the amount you bid for and then after the auction result is out refund you the balance. As the amount paid for is likely above 100, the yield will likely be around 2.1% pa which is in line with market yields (see MAS benchmark daily SGS prices).

Thank you for the information!

 

[Potent]

The latest bid price is 103.3,
https://eservices.mas.gov.sg/statistics/fdanet/BondOriginalMaturities.aspx?type=N5.

At this bid price, the effective yield (including all your future 3% coupons and the maturity sum) is just 2.1%.

No free lunch unless you are happy at this sort of returns (better off with cpf).

Thank you for sharing the information. Quite new to this.reopening thing.

 

[ericcsn]

Thank you for sharing the information. Quite new to this.reopening thing.

u can use this tool:
https://www.mas.gov.sg/bonds-and-bi...ore-government-securities/sgs-bond-calculator

 

[Potent]

u can use this tool:
https://www.mas.gov.sg/bonds-and-bi...ore-government-securities/sgs-bond-calculator

I did that then found need pay more with dirty money. And jus to bank on other bros experience. Thanks for sharing.

 

[lzydata]

Auction: N524100X 5-Year Bond (Reopened)​

Total Amount Allotted S$2.6 billion
Amount Allotted to Non-Competitive Applications S$416.8 million
Amount Allotted to MAS S$300.0 million
Total Amount Applied S$5.2 billion
% of Competitive Applications at Cut-off Allotted Approximately 62%
% of Non-Competitive Applications Allotted 100%
Bid-to-Cover Ratio 2.01

Cut-off Yield 2.05% p.a.
Cut-off Price 103.989
Median Yield 1.99% p.a.
Median Price 104.214
Average Yield 1.97% p.a.
Average Price 104.289

https://www.mas.gov.sg/bonds-and-bi...nds?issue_code=N524100X&issue_date=2025-06-02

Auction: NX24100T 10-Year Bond (Reopened)​

Total Amount Allotted S$0.9 billion
Amount Allotted to Non-Competitive Applications S$52.1 million
Amount Allotted to MAS S$0.0 million
Total Amount Applied S$2.2 billion
% of Competitive Applications at Cut-off Allotted Approximately 53%
% of Non-Competitive Applications Allotted 100%
Bid-to-Cover Ratio 2.46

Cut-off Yield 2.4% p.a.
Cut-off Price 108.073
Median Yield 2.38% p.a.
Median Price 108.24
Average Yield 2.32% p.a.
Average Price 108.742

https://www.mas.gov.sg/bonds-and-bi...nds?issue_code=NX24100T&issue_date=2025-06-02

 

[lzydata]

Melbourne – Asia’s top-rated bonds in Singapore and Australia are getting a lift from rising questions about the appeal of Treasuries, as fears that a proposed US tax Bill may hit foreign investors add to pressure following a recent ratings downgrade.

...

That is adding to the appeal of the world’s dwindling supply of AAA-rated bonds. The spread between Australian 30-year bonds and equivalent Treasuries is around its narrowest level in a year, a sign that investors are putting more of their money into the Australian debt.

The gap between the same 30-year bonds from Singapore and the US is near a record discount.

https://www.straitstimes.com/busine...e-bonds-lifted-by-pullback-from-us-treasuries

 

[lzydata]

Auction: N522100N 2-Year Bond (Reopened)​

Investors may submit auction applications for the following 2-Year Singapore Government Securities (SGS) bond. This is a re-opening of an existing bond.

https://www.mas.gov.sg/bonds-and-bi...nds?issue_code=N522100N&issue_date=2025-08-01

Auction date is 29 July so applications close the day before.

 

[terry2005]

Let's suppose you participated in this auction (recently concluded) and purchased $1,000 (face value) of N522100N, a new issue 5 year Singapore Government Security. Here's what actually happens:

1. $1,000 is deducted from your account when you place the order, before the deadline (and before the auction).

2. $2.08 is refunded to your account within a couple days after the auction. That's because the cut-off price was $997.92. In other words, you receive an immediate discount off this bond's face value. The discount is factored into the annualized yield computation (2.92%). (See below.)

3. You receive coupons of about $14.38 every 6 months. For a 5 year bond there are 10 of these coupon payments. It's "about" due to rounding and occasional differences in when business days fall. But the total coupon payments for all 5 years will surely equal $143.75 — $28.75 * 5.

4. When the bond matures (at the end of 5 years) you receive the face value ($1,000) — $2.08 more than you paid for the bond at initial auction. That extra $2.08 (as mentioned) raises the annualized yield to 2.92%.

Bonds are routinely quoted in $100 increments, so that's what the cut-off price means ($99.792). In fact this particular bond is only available in $1,000 increments, so you'd multiply this cut-off price by 10 to get the price of a $1,000 bond in the initial auction. That's how we know the bond was $997.92 to buy and that $2.08 was refunded. (Per $1,000 increment; $1,000 is the minimum.)

Auction: N522100N 2-Year Bond (Reopened)​

Investors may submit auction applications for the following 2-Year Singapore Government Securities (SGS) bond. This is a re-opening of an existing bond.

https://www.mas.gov.sg/bonds-and-bi...nds?issue_code=N522100N&issue_date=2025-08-01

Auction date is 29 July so applications close the day before.

So the returns that BBCWatcher mentioned still applies? Or need to factor in the Closing Price (102.42)? If yes, how does it affects the returns or principal amount?

 

[reddevil0728]

So the returns that BBCWatcher mentioned still applies? Or need to factor in the Closing Price (102.42)? If yes, how does it affects the returns or principal amount?

Generally yes except…

1. 115% of what you applied for will be deducted

2. Look at cut off price to determine the refund

3. The coupon is fixed because it’s a reopened bond and already paying coupon

4. You receive the face value yes.

for new bond, the coupon rate determines the yield.

For reopened bond, the coupon rate is fixed, but is how much you actually pay for each $1 of face value that determines the yield.

 

[lzydata]

So the returns that BBCWatcher mentioned still applies? Or need to factor in the Closing Price (102.42)? If yes, how does it affects the returns or principal amount?

The closing price/yield is not necessarily going to be the auction result. The auction price/yield is what will affect the principal amount to be paid and the returns.

 

[terry2005]

If the auction results is the same as closing price ($1.0242), then it's as good as 1st year no interest?

 

[reddevil0728]

If the auction results is the same as closing price ($1.0242), then it's as good as 1st year no interest?

Depends on what you bid?

 

[terry2005]

Depends on what you bid?

U mean select competitive bid??

 

[BBCWatcher]

If the auction results is the same as closing price ($1.0242), then it's as good as 1st year no interest?

Don't overthink this.

This auction is for a bond (N522100N) that pays about $14.38 every 6 months (on March 1 and September 1)(*) until maturity on September 1, 2027, when it (also) pays back face value ($1,000). What's a government bond like that currently worth? Something above $1,000 (to be decided in this auction), because ~$14.38 every 6 months is rather a lot these days.

It's really that simple. Any questions?

(*) The coupon payments alternate between $14.38 and $14.37.