Bonds by Singapore Govt

[(%)]

I wonder where does one go to in order to buy bonds issued by sg government? Does the government of this country issue bonds?

I am not talking about unit trusts or bond funds managed by fund managers.

Does anybody know?

[agent x]

sg govt has plenty of excess money (around S$750 bil) but some govt agencies such as HDB and LTA issue bonds just to generate a bond market. Yields are very low. You are better of investing in REITS. I like the shipping trusts for their yield of around 10%

[non existant returns]

singapore govt doesnt issue bonds because they have negative returns compared to inflation.  this is how they are subsidizing the property sector with negative interest rates. Cant go on forever. Interest rates are going up big time.

[total garbage]

The above replies are the biggest piece of dis-information I have seen, even on this board (accepting the comment re: needing to borrow).  The Government either issues or re-opens bonds monthly, typically first day of the month.

Yields are not high, 1% for 1 year to about 3.5% for 20 year.  There are currently about 100bn SGD outstanding (1/3 bills, 2/3 bonds).

Type Singapore Government Bonds into google and see what you find.

Excerpt here:

"SGS Issuance
 
As the Singapore Government does not need to finance its expenditures through the issuance of government bonds, SGS issuance is aimed primarily at developing Singapore's capital markets.

Since May 2000, MAS has embarked on a focused issuance programme aimed at building large and liquid benchmark bonds. This is achieved through larger issuance of new SGS bonds and re-openings of existing issues, thereby enlarging the free float. Occasionally, bond purchase operations are planned in conjunction with the issuance of new SGS bonds, to help re-channel liquidity from off-the-run issues into the benchmark bonds.

MAS issues T-bills and bonds on a regular basis. 3-month T-bills are issued weekly, whilst 1-year T-bills, 2-, 5-, 7-, 10-, 15- and 20-year bonds are issued according to an annual issuance calendar, which is usually pre-announced in September for the following year.

The issuance size of each T-bill and bond auction is typically announced five business days ahead of the scheduled auction date. Auction announcements are made via MAS' website and major local newspapers. More details on SGS auctions can be found here."

How do you buy them:

" How Do I Purchase SGS?   
    First, approach any participating bank that is a Primary Dealer or Secondary Dealer of the SGS market to open a SGS trading account. With this account, you can purchase SGS over the counter with these banks. As SGS are scripless, ownership of SGS is reflected as a book entry in the investor's account with the bank. If you wish to buy SGS at the primary auctions, you need to open accounts with and submit your bids through the PDs or through any Secondary Dealers who will submit bids to the PDs on your behalf."

Who are primary dealers/Secondary dealers?

"Primary Dealers
 ABN AMRO Bank NV 
 BANK OF AMERICA, NATIONAL ASSOCIATION
 BARCLAYS BANK PLC
 CITIBANK NA
 CREDIT SUISSE 
 DEUTSCHE BANK AG
 DEVELOPMENT BANK OF SINGAPORE LTD, THE
 HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED, THE
 OVERSEA-CHINESE BANKING CORPN LTD
 STANDARD CHARTERED BANK
 UNITED OVERSEAS BANK LTD
   
SGS primary dealers play a critical role in the growth and development of the bond market by carrying out the following functions:   
     
i. Provide liquidity to the SGS market by quoting two-way prices under all 
 market conditions;
ii. Underwrite issuance at SGS auctions;
iii. Provide market feedback to MAS; and
iv. Assist in the development of the SGS market.
   
     
  Secondary Dealers
Banks, merchant banks and stockbroking firms are among the approved secondary dealers of the SGS market. Another 98 banks maintain book-entry SGS accounts with MAS for their own trading.

SGS Brokers
Nittan AP provides broking services for SGS outright and repo transactions to facilitate secondary trading in the interbank market. Apart from the dealers and brokers, other market participants include finance companies, insurance companies, fund managers, corporations and individuals.  "


I'd try walking into any bank and asking about an account.


 



 

[non existant returns]

thanks for confirming my point. 1% for 12 months is not a return. In fact if you buy these you are donating money to the Government given that inflation is running at many times this. These are not bonds this is robbery.

[total garbage]

That may be true but your statement "Singapore doesn't issue bonds" was completely false.

You may think the returns are rubbish and I may agree, the answer to the OPs question though is they are issued and the answer is yes and it happens regularly.  Personally I don't own any.  However, given bank interest rates are about 0.1% unless you want fixed term deposit (then only get about 1% for shorter maturities) in comparison bonds look better than competitive.  If you don't like the look of the stock market and want to stay liquid (i.e. no lock ups) then it is better than parking the cash in your bank account.  Better credit rating than the banks as well.

The main issue I had with the previous responses was they were factually incorrect.  I'm sure OP can make up his own mind about whether they are a worth investment but at least give him factually correct info.

[(%)]

A BIG thank you to all, for your information and comments.

I am finally getting some concrete information. You see, I had tried talking to a few big banks (namely DBS, Citibank, ANZ, DBS Vickers). I called. I walked in. The disturbing part of it all is, none of them, NO ONE, had a clue about what I need.

Every time, they would proceed to give me a lengthy presentation about bond mutual funds, unit trusts, xxx funds. ARGHS. I had sat through many discussions regarding funds. It proved impossible to find someone at the bank who knows something.

I will attempt to enquire about SGS trading account. There seems very little information about the sg bond market. Or perhaps my googling skills is really that bad...

Thanks a lot, all. I am really appreciative and grateful.

[total garbage]

No problem.

Unfortunately not too surprising.  The average desk muppet won't know what you are talking about or will have been told to sell you something with high commission.  The big investment banks won't be interested in private investors unless you have tons of cash in which case they will likely point you in the direction of private banking.

I typed the following into google

singapore government securities account sgs

uob come up and seem to offer trading them with zero commission.  Citi web under investments has a bond section, doesn't specifically mention sgs but likely.  I'd phone the numbers on these sites rather than try the front desk.  I expect you can find some others as well.

[agent x]

The above replies are the biggest piece of dis-information I have seen, even on this board (accepting the comment re: needing to borrow).  The Government either issues or re-opens bonds monthly, typically first day of the month.

Yields are not high, 1% for 1 year to about 3.5% for 20 year.  There are currently about 100bn SGD outstanding (1/3 bills, 2/3 bonds).

Geezz, don't get so worked up! Just sharing what i know as no-one else replied. Am not an expert in bonds but I know that HDB & LTA have some sort of bond listed on SGX. I believe there are other bond related issues traded as well.

[total garbage]

You implied govt does not issue them (didn't state it but implied). You said you are not an expert, fair enough and you tried to be helpful as well. However if unsure limit your comments to where you know as like it or not you gave disinformation that would actually hamper op.

[DBS Preferred Shares]

You can buy DBS preferred shares (it was just launched recently & overwhelmingly subscribed )  in the secondary market (DBS Treasures Banking or ABN AMRO - which were selling them or possibly other preferred banking - ) which you can buy and sell  like bonds.

 Min amt is S$250k. The yield is more than 5% at the moment.

[likeBull]

I am new to the bonds, however picking up from the correspondece, am quite in treat to know how it works. Now I've been onto the sgs website and there is a bond offered for 3 months? The closing date is on the 16th. But it does not state the yield (interest) for it?

Advice pls.

Ta

[auction]

Existing bonds you get a price for, new ones are by auction.