Buy SGS and T-Bills at Auction: For Individuals
Individual investors may bid for Singapore Government Securities (SGS) bonds and T-bills at primary auctions. You can apply through the local banks' ATMs and internet banking portals, or use your SRS/CPFIS funds to apply.
At a Glance
What You Will Need
To apply for SGS, you will need:
- A bank account with DBS/POSB, OCBC or UOB. You can visit any of the banks’ branches in Singapore to open an account.
- An under your own name, as CDP will be the custodian for your SGS holdings.
Note: You may want to set up with your CDP account. This links the CDP account to the bank account and allows for coupons from SGS holdings to be credited directly into your bank account.
Before You Apply
You will need to decide on the type of SGS you want to buy, whether to submit a competitive or non-competitive bid, and the investment amount.
When buying SGS bonds and T-bills at an auction, you will need to decide whether to submit a non-competitive or competitive bid at an auction.
In a non-competitive bid, you only specify the amount you want to invest, not the yield. Choose this if you wish to invest in the bond regardless of the return or are unsure of what yield to bid.
You will get the bond at the cut-off yield, which is highest accepted yield of successful competitive bids.
All non-competitive bids will be allotted first, up to 40% of the total issuance amount. If the amount of non-competitive bids exceeds 40%, the bond will be allocated to you on a pro-rated basis.
If you wish to invest in the bond only if it yields above a certain level, submit a competitive bid. You can specify the yield you are willing to accept in percentage terms, up to 2 decimal places.
Note that you may not get the full amount that you applied for, depending on how your bid compares to the cut-off yield. After non-competitive bids are allotted, the balance amount is allotted to competitive bids from the lowest to highest yields.
The minimum bid amount for SGS bonds and T-bills is S$1,000. Decide how much you want to invest, in multiples of S$1,000.
Ensure you have sufficient funds in the bank account you use to apply:
- For new SGS issues, the full bid amount will be debited from your bank account at the point of application.
- For reopened bonds, since the price of the bond is only known after the auction, 115% of the bid amount will be debited. Any difference from the price will be refunded into or debited from your bank account after the auction.
How to Apply
You can bid for an SGS auction through the local banks' ATMs or internet banking, or using your SRS/CPFIS funds. Here are the steps for applying.
If you are using cash to buy SGS, the most convenient way to apply is through:
- DBS/POSB, OCBC and UOB ATMs and internet banking portals.
- OCBC’s mobile application.
You will need your individual CDP account number to apply.
After You Apply
After an auction closes, you can check the aggregate results of the auction about an hour later on the MAS website.
The bond or T-bill is issued 3 business days after the results are announced.
If your bid is successful, the bond or T-bill will be reflected in your CDP account after the issuance date. You will also receive a notice from CDP within 1 week of the issuance date.
When: 1 or 2 days after auction day
If your bid is unsuccessful or invalid, the money will be refunded into the bank account used to make the application. The refund will be reflected in your bank account 1 or 2 days after the auction day.
When: 6 months after issuance for new bonds
For new SGS bonds, you will receive your first coupon payment 6 months from the bond's month of issue, on the first business day of the month.
For a reopened bond, you will receive the coupon payment on the bond's stated coupon payment date.