Singapore SGS Bond

[bigrooster]

Auction: N521100V 2-Year Bond (Reopened)​

Cut-off Yield : 3.46% p.a.
Cut-off Price : 95.042
Median Yield 3.38% p.a.
Median Price95.22
Average Yield 3.31% p.a.
Average Price95.376

 

[CaptainWu]

Auction: N521100V 2-Year Bond (Reopened)​

Cut-off Yield : 3.46% p.a.
Cut-off Price : 95.042
Median Yield 3.38% p.a.
Median Price95.22
Average Yield 3.31% p.a.
Average Price95.376

Not familiar with SGS Bond, just trying to understand the above. As this is reopened bond so the original coupon rate is fixed at 1.5%. I am paying $95.042 per unit so the effective yield for the next 2 years is 3.46%? For competitive bid, we are bidding for the yield or the price?

 

[reddevil0728]

Not familiar with SGS Bond, just trying to understand the above. As this is reopened bond so the original coupon rate is fixed at 1.5%. I am paying $95.042 per unit so the effective yield for the next 2 years is 3.46%? For competitive bid, we are bidding for the yield or the price?

See this

For new SGS bond, the coupon rate is set close to the cut-off yield (rounded to nearest 0.125%), and cut-off-price is close to 100.

However, for re-open bond, you can't change the coupon rate. The 1.25% coupon was already set in 2021 during its first auction. See https://www.mas.gov.sg/bonds-and-bi...?issue_code=N521100V&maturity_date=2026-11-01 - look at the auction history at the page bottom.

Today's interest rate is much higher (3%+) but this bond is only paying 1.25% coupon. To compensate for this, the price will have to be lower than its original cut-off price in its first auction in 2021 (close to 100), ie. discounted.


Expanding on Izydata's example, if the cut-off price is determined to be $95 in this new auction, it will yield 3.43%.

This 3.43% is guaranteed (if held to maturity), and realized in 2 ways:

1. Regular coupons (1.25% pa)
2. Discounted price of $95 against the original cut-off price (close to $100). This is similar to T-bill, which you buy at a discount.

 

[CaptainWu]

See this

Yes and thanks I am reading them, just still not sure how to link the cut-off price and yield.
For the calculator I should enter the auctioned yield 3.46 in this case? This gives me the price at 94.91 and amount to pay at 950.1, I am not sure what is the cut-off price 95.042 in this case?

Also when I entered the respective amount to Excel and I did my own calculation for XIRR of 3.22% and simple annual interest of 3.94% in this case. Not sure if they are correct.

 

[fr33d0m]

It is “dirty”. Accrued interested included.

 

[ZinY]

It is “dirty”. Accrued interested included.

https://www.mas.gov.sg/bonds-and-bi...?issue_code=N521100V&maturity_date=2026-11-01

So, if we key in Cut-off Price : 95.042, then Dirty Price will be S$95.14, and
Yield-to-Maturity (%) = 3.40, which is slightly less than Cut-off Yield : 3.46% p.a?

We have to consider Yield-to-Maturity only, right?
I am very new to SGS Bonds.

 

[ng boon sua]

Hi all i am new, if I use cash to buy the 5 years sgs which yield about 3.5%, is it worth if we consider 5 years inflation etc, thanks all

 

[reddevil0728]

Hi all i am new, if I use cash to buy the 5 years sgs which yield about 3.5%, is it worth if we consider 5 years inflation etc, thanks all

This one requires crystal ball.

do you think inflation will hot/remain 3.5% or higher In the next 5 years?

if so, then maybe not as worth.

 

[gobin74]

Hi for the 5 year bond closing today what are the likely projections in terms of returns for cash ?

Any pointers or comments would be welcome !

cheers

 

[reddevil0728]

Hi for the 5 year bond closing today what are the likely projections in terms of returns for cash ?

Any pointers or comments would be welcome !

cheers

refer to the closing yield that's found on the bond's page itself

 

[gobin74]

refer to the closing yield that's found on the bond's page itself

Many thanks reddevil ...Appreciated

Given the short turnaround time can u kindly help to put the URL plz if possible .

thnx again

 

[reddevil0728]

Many thanks reddevil ...Appreciated

Given the short turnaround time can u kindly help to put the URL plz if possible .

thnx again

googling would have been faster than waiting for a reply.

can just google SGS Bonds.

first link

then click on the open 1

 

[BBCWatcher]

Auction Results: N523100W (Reopened)
Maturity Date: August 1, 2028
Cut-off Yield: 3.22%
% of Competitive Applications at the Cut-off Yield Allotted: ~16%
% of Noncompetitive Applications Allotted: 100%
Cut-off Price: 99.881
S$2.6 billion allotted, of which...
→ S$405.4 million to noncompetitive applications
→ S$300 million to MAS

 

[lzydata]

Auction: NZ19100S 15-Year Bond (Reopened)​

SGS Type SGS (Market Development)
Announcement date 23 Jul 2024
Auction date 29 Jul 2024
Issue date 01 Aug 2024
Maturity date 01 Jul 2039
Coupon rate 2.375% p.a.
Coupon payment dates 01 Jul and 01 Jan
Closing yield 3.07% p.a.
Closing price 91.68

Total Amount Allotted S$1.7 billion
Amount Allotted to Non-Competitive Applications S$290.9 million
Amount Allotted to MAS S$200.0 million
Total Amount Applied S$4.2 billion
% of Competitive Applications at Cut-off Allotted Approximately 63%
% of Non-Competitive Applications Allotted 100%
Bid-to-Cover Ratio 2.48

Cut-off Yield 3.02% p.a.
Cut-off Price 92.499

https://www.mas.gov.sg/bonds-and-bi...nds?issue_code=NZ19100S&issue_date=2024-08-01

 

[lzydata]

Auction: NY14100E 5-Year Bond (Reopened)​

SGS Type SGS (Market Development)
Announcement date 22 Aug 2024
Auction date 28 Aug 2024
Issue date 02 Sep 2024
Maturity date 01 Jul 2029
Coupon rate 2.875% p.a.
Coupon payment dates 01 Jul and 01 Jan
Closing yield 2.69% p.a.
Closing price 100.84

https://www.mas.gov.sg/bonds-and-bi...nds?issue_code=NY14100E&issue_date=2024-09-02

 

[lzydata]

Auction: NY14100E 5-Year Bond (Reopened)​

SGS Type SGS (Market Development)
Announcement date 22 Aug 2024
Auction date 28 Aug 2024
Issue date 02 Sep 2024
Maturity date 01 Jul 2029
Coupon rate 2.875% p.a.
Coupon payment dates 01 Jul and 01 Jan
Closing yield 2.69% p.a.
Closing price 100.84

https://www.mas.gov.sg/bonds-and-bi...nds?issue_code=NY14100E&issue_date=2024-09-02

Results:
Cut-off Yield 2.56% p.a.
Cut-off Price 101.912
Median Yield 2.54% p.a.
Median Price 102.003
Average Yield 2.49% p.a.
Average Price 102.231

 

[d5dude]

Results:
Cut-off Yield 2.56% p.a.
Cut-off Price 101.912
Median Yield 2.54% p.a.
Median Price 102.003
Average Yield 2.49% p.a.
Average Price 102.231

Bid to cover ratio 3.88, demand was just thru the roof.

 

[reddevil0728]

Bid to cover ratio 3.88, demand was just thru the roof.

ppl wanting to lock in 5y

 

[lzydata]

Auction: NC22300W 50-Year Bond (Reopened)​

SGS Type Green SGS (Infrastructure)
Announcement date 20 Sep 2024
Auction date 26 Sep 2024
Issue date 01 Oct 2024
Maturity date 01 Aug 2072
Coupon rate 3% p.a.
Coupon payment dates 01 Aug and 01 Feb

Auction results

Total Amount Allotted S$1.5 billion
Amount Allotted to Non-Competitive Applications S$92.5 million
Amount Allotted to MAS S$0.0 million
Total Amount Applied S$2.5 billion
% of Competitive Applications at Cut-off Allotted Approximately 38%
% of Non-Competitive Applications Allotted 100%
Bid-to-Cover Ratio 1.64

Cut-off Yield 2.62% p.a.
Cut-off Price 110.823
Median Yield 2.5% p.a.
Median Price 114.401
Average Yield 2.46% p.a.
Average Price 115.63

https://www.mas.gov.sg/bonds-and-bi...nds?issue_code=NC22300W&issue_date=2024-10-01

Last SGS bond on offer for the year.

 

[DevilPlate]

50y bond at 2.62% is crazy low