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Old 25-08-2012, 11:08 PM   #1
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SGS bonds

I'm getting confuse. I know that to buy SGS(s'pore govt) bonds, you can do so via the Bank's ATM. Let say i want to buy a 2 year SGS bond which say will open next month, after i buy it how am i going to do with the purchase just let it stay there? Just wait for it to mature & earn coupons interest with the principle? if i want to sell prematurely say 6 month later, how can i do it?
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Old 25-08-2012, 11:24 PM   #2
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I'm getting confuse. I know that to buy SGS(s'pore govt) bonds, you can do so via the Bank's ATM. Let say i want to buy a 2 year SGS bond which say will open next month, after i buy it how am i going to do with the purchase just let it stay there? Just wait for it to mature & earn coupons interest with the principle? if i want to sell prematurely say 6 month later, how can i do it?
After you buy SGS bills or bonds they will be custodised in your CDP account. There you can keep track of it and the interest and principal will be handled just like your stock dividends. As for selling before maturity, you can sell it on SGX. However, given the very low prevailing yields, the price you get will probably not be very good. In fact, SGS of 2 years and shorter terms are yielding around 0.25%, even less than some savings deposit accounts, so IMO there's little point investing in them.

SGS - FAQs for Retail Investors
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Old 26-08-2012, 11:47 AM   #3
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How about SGS bonds that matures on 5 years. They usually have a higher yield say 0.4 and coupon rates of say 2.3%? compared to leaving your money to FD or saving a/c isn't it much more better and you can liquidate it if needed.
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Old 26-08-2012, 11:55 AM   #4
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refering to the below.

5-Year
N710100Z
2.375%
01 Apr 2017

Price
Yield
108.95
0.42
108.95
0.42
108.94
0.42
108.96
0.41
109.00
0.40
108.96
0.41
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Old 26-08-2012, 12:36 PM   #5
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How about SGS bonds that matures on 5 years. They usually have a higher yield say 0.4 and coupon rates of say 2.3%? compared to leaving your money to FD or saving a/c isn't it much more better and you can liquidate it if needed.
There are 6mth fd that have a better interest rate than 0.4% so I don't see how this is worth it.

Last edited by anfielder; 26-08-2012 at 12:38 PM..
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Old 26-08-2012, 02:21 PM   #6
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There are 6mth fd that have a better interest rate than 0.4% so I don't see how this is worth it.
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Old 27-08-2012, 09:08 AM   #7
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bond is for those with lotsa extra cash that can be parked aside for more than 10years .... interest is like passive income enough for 1 year's "operation cost" .... yet stil have another pile for other purposes
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Old 31-08-2012, 01:56 AM   #8
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don't buy bonds - invest in bonds instead

sciprof, don't buy bonds - invest in bonds instead as part of an investment portfolio, if your intention is to grow your money.

in my opinion, just buying bonds alone holds risk of losing to inflation and watching bond price drop if interest rate rises. one can buy new issues of Singapore Government bonds through DBS/POSB internet banking also.

To invest in singapore government bonds for long term, you can choose to hold the bonds in a diversified investment portfolio together with other assets. this way, the entire portfolio has a better chance to grow in value through time as different assets can help overcome each other's weakness in different market conditions. You can stick with such an investment portfolio till you need to liquidate it for the cash.

the Singapore Permanent Portfolio is one such DIY investment strategy that invest using Singapore Government 30 years bond among other assets - the assets are chosen based on economic cycle theory and the entire portfolio is designed to provide more consistent market returns and capital protection.
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Old 31-08-2012, 09:12 AM   #9
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Bond buying is economy of scales...
Bigger pool of funds better returns.. problem is retail investor have limited scope
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Old 01-09-2012, 01:03 AM   #10
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Bond buying is economy of scales...
Bigger pool of funds better returns.. problem is retail investor have limited scope
yes, retail investor have limited profit if they just buy bonds alone. retail investor with limited scope (capital) should instead consider owning bonds in a stock/bond portfolio, or 4 asset permanent portfolio, for more meaningful returns.

investing in a 'permanent portfolio' of diversified assets is less risky for retail investor than trying to invest in bonds, stocks or gold separately.
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Old 01-09-2012, 03:41 PM   #11
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so lets say I have a little spare cash to spare, say bout 10-20k, and I want something short term, is it better to go for 6months FD or 6months T-bill?
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Old 02-09-2012, 03:08 PM   #12
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so lets say I have a little spare cash to spare, say bout 10-20k, and I want something short term, is it better to go for 6months FD or 6months T-bill?
FDs from some banks like ICICI (0.60%) and Maybank (0.55%) have higher yields than the 6-month T-bill (0.26%). You can also look at CIMB's StarSaver account, a savings account that gives 0.8% for certain conditions.
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Old 08-10-2015, 01:20 PM   #13
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Can someone show me how to check the current prevailing value of SGS Bonds, please?

Thanks.
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Old 08-10-2015, 01:29 PM   #14
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Can someone show me how to check the current prevailing value of SGS Bonds, please?

Thanks.
https://secure.sgs.gov.sg/fdanet/Sgs...suePrices.aspx
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Old 08-10-2015, 07:24 PM   #15
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Is it possible to check the historical prices too?

Thank you sir.
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