Market Characteristics

Issuance

MAS Bills are issued on a regular basis. The current maturities are 4 and 12 weeks, and a 24-week MAS Bill will be issued from January 2014. The issuance calendar for MAS Bills is typically pre-announced in May and November for the following half-year. Key features of MAS Bills can be found in the table below.

Issuer

Monetary Authority of Singapore

Typical issue maturity

The maturity range is up to 24 weeks

Minimum denomination

S$1,000

Listing

MAS Bills are not listed on the Singapore Exchange

Structure

MAS Bills are zero-coupon, and issued and traded on a discount basis



Auctions

Auctions of MAS Bills are generally carried out three business days before their respective issuances. An announcement will be made on the MAS website one business day before each auction, where the issuance size of each MAS Bill will be published.

All applications must be submitted through any of the approved primary dealers. Primary dealers will then apply for the book-entry MAS Bill on offer at auctions via the SGS electronic applications service (SGS eApps) available on the MAS website.

 

MAS Bills

Auction Format

Uniform pricing-Successful 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

Only competitive bids may be submitted. Bids are in yield terms.

Admission

Only institutional investors may apply.

Central bank participation

No

Competitive bids

 

Maximum number of bids

Unconstrained

Maximum allotment

 

- Primary dealer

Unconstrained

- Non-primary dealer

Unconstrained

Minimum amount

S$1, 000 per application

Auction results

 

Lag between:

 

1. announcement and auction

About one business day.

2. bids and results

About one 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

 4-week and 12-week MAS Bills: Weekly

24-week MAS Bill: Fortnightly

Cut-off Time

All bids need to be submitted by noon on the auction day.

Minimum denomination

S$1,000

When-issued trading

Yes

 

Key Participants

Primary Dealers
  • AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED
  • BANK OF AMERICA, NATIONAL ASSOCIATION
  • BARCLAYS BANK PLC
  • BNP PARIBAS
  • CITIBANK NA
  • CREDIT SUISSE
  • DEUTSCHE BANK AG
  • DEVELOPMENT BANK OF SINGAPORE LTD, THE
  • HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED, THE
  • MALAYAN BANKING BHD
  • OVERSEA-CHINESE BANKING CORPN LTD
  • STANDARD CHARTERED BANK
  • UNITED OVERSEAS BANK LTD

Primary dealers play a critical role in the growth and development of the MAS Bills market by carrying out the following functions:  

  1. Provide liquidity to the MAS Bills market by quoting two-way prices under all market conditions;
  2. Underwrite issuance at MAS Bills auctions;
  3. Provide market feedback to MAS; and
  4. Assist in the development of the MAS Bills market.
MAS Bills Broker

Tradition provides broking services for MAS Bills outright and repo transactions to facilitate secondary trading in the interbank market.

Tax and Trading

Capital Gains

There is no capital gains tax in Singapore.

Interest and Other Qualifying Income1
  • Resident non-individuals2
    Similar to SGS, interest and other qualifying income derived by resident non-individuals (excluding Financial Sector Incentive - Standard Tier companies3) in respect of MAS Bills issued on or before 31 December 2018 is taxed at a concessionary rate of 10%.
  • Non-resident non-individuals4
    Similar to SGS, interest and other qualifying income derived by non-resident non-individuals in respect of MAS Bills issued on or before 31 December 2018 is exempted from tax.
Trading Income

Income earned by Primary Dealers from trading in MAS Bills is exempted from tax.

Trading Basis

Prices to three decimal places

Typical transaction size

S$5 million for on-the-runs (benchmarks) and off-the-runs

Settlement date convention

T+1

Clearing system

Transactions are cleared on a DVP basis over the new MAS Electronic Payment System (MEPS+) and MAS' SGS Book-entry clearing system.

Trading Hours

9:00 a.m. to 11:30 a.m. and 2:00 p.m. to 4:30 p.m.



 

________________________________________
1 Other qualifying income means discount, prepayment fee, redemption premium, break cost and such other income as may be prescribed by the income tax regulations.
2 Including a permanent establishment in Singapore of a non-resident person.
3 Interest and other qualifying income derived by a Financial Sector Incentive - Standard Tier company in respect of MAS Bills issued on or before 31 December 2018 is taxed at a concessionary rate of 12 % with effect from 1 January 2011.
4 Non-resident non-individuals include (i) any person who is not resident in Singapore and who does not have a permanent establishment in Singapore; and (ii) any person who is not resident in Singapore and who carries on any operation in Singapore through a permanent establishment in Singapore where the funds used by that person to acquire SGS are not obtained from the operation.

 

Last Modified on 28/11/2017