Monday, August 11, 2014

No More Short-Term SGS T-Bills? Anyone else knew?

While I was doing more research to find out how a retail investor can invest in bonds and what are the related fees, I stumbled around the MAS website and found out that... hey, no more 3-month and 6-month T-bills?

These are the screenshots of the 3-month and 6-month T-bills annoucement:

So... that's kind of strange, right? Or am I reading it wrongly? I actually don't think so. From the FAQ about SGS bonds, this is their new table showing what bills and bonds they have.

And if you check out their issuance calendar, you will see that they only have the listings for 1 year T-bills and bonds. How come I never heard about this!

After I read a post by CashBench and Moneysense, I was quite excited to try and apply for an SGS bond or bill! I was thinking of applying through DBS iBanking. Did you know that they don't charge any fees for that at all? Hmmm, I guess you can't really charge fees if the investor is making like 0.38% for a 1-year bill, haha. Come to think of it, that is pretty horrible returns. Well, it is AAA rated!


Anyway, does anyone out there know what is the best way to go about for a retail investor to buy and sell bonds, both SGS and corporate bonds? It seems like SGS bonds should be applied for at the auctions, while I haven't a clue how to buy individual corporate bonds and of course, selling both these types of bonds. Will any bond expert step up, or kindly point me in the right direction to find more information? Thanks!

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