10-Year Auction To Take Place On March 29

Singapore MAS has announced a 10-year auction to take place on Monday March 29, the auction will be an SGD 2.6bn reopening of the 2.875% Sep 2030 issue, the auction size in-line with the SGD 2.5bn average of the past ten auctions in this maturity.

• This is the first issue under the recently announced SGD 11bn COVID-19 aid package. The challenges of the pandemic will force the Singapore to run a budget deficit of 2.2% of GDP. That compares with the global average for overall fiscal deficits of 11.8% of GDP in 2020 and 8.5% in 2021, according to IMF projections. However, rather than issuing new debt, the government has announced its intention to draw on past reserves for the package.