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SGS Issuance & Auction Conduct

SGS T-bill and bond auctions are held on a regular basis. 3-month T-bills are issued weekly, whilst 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:

	T-bills	Bonds
Issuer	Singapore Government	Singapore Government
Tenor	3M and 1Y	2Y, 5Y, 10Y, 15Y, 20Y (7Y non-benchmark)
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$2.3 – 3.7 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.

	T-bills	Bonds

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	30% of issue on offer per applicant
- Non-primary dealer	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	1% of issue on offer per applicant

- Non-primary dealer	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. announcement and auction	About five business days for bonds;About three business days for T-bills

2. bids and results	About 1 hour

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 Dealers	13

Underwriters	Yes; Each Primary Dealer is obligated to tender for an equal share of the issue on offer

Post-auction subscription	No

Frequency of auctions	Weekly for 3-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

*Individual investors will be required to custodise their SGS with the Central Depository (CDP).
**The maximum auction allocation limits of 30% and 15% of the issue on offer for each Primary Dealer and non-primary dealer respectively include the amounts of non-competitive bids.

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Last modified on 14/6/2011

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