To Auction SGD 3.1bn 30-Year Bonds on Jan. 27

The MAS announced the details of the first bond auction in 2021 from Singapore. The sale is due on January 27 (Wednesday) and will reopen the March 2050 issue for SGD 3.1bn. Details here.

• The tap of the line will be the only auction for this tenor in 2021, though there is a chance of mini auctions.
• Singapore will release its budget statement for fiscal 2021 on February 16. The overall fiscal deficit for fiscal 2021 is expected to be about SGD 10b to SGD 12b, according to estimate, significantly above the 5-year average of SGD 3.1bn.
• In the past five years, outstanding Singapore government securities (SGS) bonds have grown steadily at an average rate of around 7% per year. The increase in outstanding SGS bonds helped to meet demand for high quality assets and improve secondary market liquidity.
• Market conditions in 2020 have been supportive of SGS demand. The MAS has said previously a similar pace of growth for SGS bonds is expected in 2021, subject to prevailing market conditions and that it will calibrate issuance sizes to facilitate an efficient and liquid secondary market.