Singapores bonds

Singapore's government is an active issuer of bonds (called SGS for Singapore Government Securities) Ways to invest in bonds: SGS are issued directly by the Singapore Monetary Authority and you can buy bonds through an agent bank; the bond market operated by the Singapore Exchange (SGX) ( buy corporate bonds) Bonds fund.

Singapores bonds
The market price of bonds will not necessarily be the face value or original issue price of the bond, and will depend on a number of factors such as: Credit risk of the issuer Coupon rates or interest rates of other securities Inflation rates (and expected inflation rates)

Government bonds
Government Securities Types
Treasury Bills SGS

Bonds

Maturity Secondary Trading

3-12 months SGS agent, Dealer bank (Not SGX)

2;5;10;15;2 0 or 30 years SGS agent Dealer bank SGX

Issuer

The Monetary Authority of Singapore issues SGS Bonds on behalf of the Singapore Government.

Tenor (maturity 2, 7, 10, and 15 years dates) Currency Interest Payment Minimum investment Singapore dollar ($S, or SGD) SGS Bonds carry a fixed and semiannual coupon (meaning interest is paid every 6 months). Payment is on the 1st or 15th of a particular month. In case of holiday, payment is on the next business day SGD1,000

SGS bonds are issued by the government in an action format, where anyone can bid for the Auction format new issue. All successful bidders will be allotted bonds at the same yield, which is the cut-off for primary yield (ie. lowest yield necessary to complete the issue) for successful bids submitted at the issue auction. Redemption SGS Bonds are non-callable/non-puttable bonds with bullet redemptions at face (par) value.

Taxation

There is no capital gains tax. For individuals, SGS Bonds are exempt from interest income tax. Institutions and corporations, which earned interest and discount income on SGS issued on or after 28 Feb 1998, are taxed at a concessionary rate of 10%.

Secondary SGS Bonds are not listed on the Singapore Exchange. Bonds can be sold over-the-counter via Market Trading brokers and banks.

Government bond yields and prices

This is illustrated by the 7 July 2011 closing prices for SGS:
1-Year Coupon Rate 2-Year 5-Year 7-Year 10-Year 15-Year 20-Year 2.250% 3.000% 2.875% 01 Jun 2021 99.86 01 Sep 2024 103.44 01 Sep 2030 99.36

2.250% 1.125% n/a 01 Jul 2013 103.68 01 Apr 2016 100.91

Maturity Date Price

n/a n/a