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Listing of Singapore Government Bonds on SGX

SGX has selected nineteen Singapore Government Securities (SGS) (more commonly known as Singapore Government Bonds) to be listed on SGX from 8th July 2011.

The maturities of these bonds will be least two years with the furthest maturity at 1st Sep 2030.

The minimum investment in a Singapore government bond is $1,000.

The coupon payments – made every six months – range from 1.125 per cent to 4 per cent for the nineteen bonds.

Since your purchase price is not likely to be at the face value (maturity value), the coupon rates should not be used to evaluate the interest you are getting.

The correct parameter to be used is the yield to maturity (YTM) which you will need to work out before you put in any bids for buying.

A rough indicative yield can be found at this site : SGS Bonds Prices (Secondary market).

The site shows indicative yields based on their indicative offer price.

On SGX, there will be designated market markers to ensure liquidity. It will be interesting to see what is the spread being offered as I suspect the liquidity offered by retail investors will be very little.

The trading fees for stocks will also be applied to government-bond trading and the shares will be held in CDP.

Leave a Comment:

sender says 10 years ago

hey, finally no blank screen. works fine ๐Ÿ™‚

    Martin Lee says 10 years ago

    That’s great. ๐Ÿ˜€

sender says 10 years ago

i think i will give sgs a miss. No better than bank cd for sure for short maturities.

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