SGS Issuance and Auction Conduct

SGS T-bill and bond auctions are held on a regular basis, according to an annual issuance calendar. The key characteristics of both securities are summarised in the table below:

 

 

T-Bills

Bonds

Issuer

Singapore Government

Singapore Government

Tenor

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 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

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

Annually or semi-annually 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.