SGS Issuance and Auction Conduct
SGS T-bill and bond auctions are held on a regular basis. 3-month T-bills and 6-month T-bills are issued fortnightly on alternating weeks. The 1-year T-bills and bonds are issued according to an annual issuance calendar.The key characteristics of both securities are summarized in the table below:
|
|
TBills |
Bonds |
|
Issuer |
Singapore Government |
Singapore Government |
|
Tenor |
3M, 6M and 1Y |
2Y, 5Y, 10Y, 15Y, 20Y and 30Y |
|
Interest Rate |
Discount |
Fixed Coupon |
|
Coupon Payments |
N/A |
Semi-annual
(Every 6 months) |
|
Minimum Denomination |
S$1,000 |
S$1,000 |
|
Typical Issue Size |
S$2 – 4 billion |
S$2 – 3 billion for benchmark issues |
All applications must be submitted through any of the approved SGS primary dealers. SGS primary dealers will then apply for the book-entry SGS on offer at primary auctions via the SGS electronic applications service (SGS eApps) available on the SGS website.
|
Auction Conduct Details: |
|
Auction Format |
Uniform pricing - Successful competitive bids and non-competitive bids will be allotted at a uniform yield, which is the highest accepted yield (also referred to as cut-off yield) of successful competitive bids submitted at the auction |
|
Bids |
In yield terms |
|
Admission |
All entities or individuals; non-residents are admitted* |
|
Central bank participation |
Yes, but only on a non-competitive basis; MAS' intended amount (if any) is pre-announced to the market prior to each auction |
|
Competitive bids |
|
|
Maximum number of bids |
Unconstrained |
|
Maximum allotment**
- Primary dealer
- Non-primary dealer |
30% of issue on offer per applicant
15% of issue on offer per applicant |
|
Non-Competitive bids |
|
|
Status |
Total non-competitive allotment is subject to a limit of 40% of issue on offer, with pro-rated allocation if application exceeds this limit |
|
Maximum allotment**
- Primary dealer
- Non-primary dealer |
1% of issue on offer per applicant
S$2 million per application for bonds;S$1 million per application for T-bills |
|
Auction Process |
For both bonds and T-bills, non-competitive bids will be allotted first. The balance of the issue amount will be subsequently awarded to competitive tenders from the lowest to highest yields |
|
Auction results |
|
|
Lag between: |
|
|
1. annoucement and auction |
About five business days for bonds;About three business days for T-bills |
|
2. bids and results |
About 1 hour, barring any unforseen circumstances |
|
3. results and settlement |
About three business days |
|
Published information |
Average and cut-off prices; percentage of applications at cut-off allotted, total amount of securities applied for and allotted |
|
Other information |
|
|
Accounting |
Book-entry |
|
Primary Dealer |
13 |
|
Underwriter |
Yes; Each Primary Dealer is obligated to tender for an equal share of the issue on offer |
|
Post-auction subscription |
No |
|
Frequency of auctions |
Fortnightly for 3-month T-bills and 6-month T-bills; twice a year for 1-year T-bills
Annually or semi-annually for bonds according to a published issuance calendar that is consistent and transparent |
|
Cut-off Time |
All bids need to be submitted by noon on the auction day. |
|
When-issued trading |
Yes |