Bonds Trading

Treasury Bonds

:

SGS T-Bills, SGS Bonds, U.S. Treasury

(Details as of 24th February 2023)

 

Want to get exposure on Treasury Products but not sure how? Fret not as investors are now able to trade Singapore Government Securities and US Treasuries with us with a minimum lot size of SGD250k for Singapore Government Securities (SGS) Bonds and USD200K for US Treasuries bills. For Singapore Treasury bills (T-bills), investors will be able to apply with minimum lot size of SGD100K with us through the primary market, while SGS bonds and US Treasuries will only be available on the secondary market basis.

Do note that Phillip Bond Desk will be charging a 0.1% on the issue price for Singapore T-bills as well as a SGD15 charge if allocation size is less than SGD100k. More details can be found on the Pricing table below.

 

What are Treasury Products?

Singapore

Singapore Government Securities (SGS) are debt obligations issued by the Government of Singapore to finance its spending and raise funds. They are backed by the full faith and credit of the Singapore Government which offer investors a safe and liquid investment option with predictable returns. Singapore Government Securities are issued in several maturities, ranging from short-term bills (T-bills) to long-term bonds (SGS bonds) and they are widely used as benchmark investments by individuals, institutions, and governments. The Government of Singapore issues SGS bonds and T-bills on a regular basis through public auctions.

United States

Similar to Singapore Government Securities, US Treasury securities are debt obligations issued by the US government to raise funds to finance its operations. Treasuries are considered to be among the safest investments in the world, as they are backed by the full faith and credit of the US government. There are several types of Treasury securities, including Treasury bills (T-bills), Treasury notes (T-notes), and Treasury bonds (T-bonds). T-bills are short-term securities with maturities of one year or less, T-notes have maturities ranging from two to ten years, and T-bonds have maturities of more than ten years. Treasuries are widely used as benchmark investments by individuals, institutions, and governments around the world.

 

Pricing

SGS T-Bills SGS Bonds U.S Treasury
Trading Primary Secondary Secondary
Min Size SGD 100,000 SGD 250,000 USD 200,000
Custody Fee N/A 0.05% p.a 0.05% p.a
Fees 0.10% (Additional SGD15.00 T-bills small size fee if allocated size is less than 100k) Please refer to POEMS for indicative bid/offer Please refer to POEMS for indicative bid/offer

Note:

  1. Singapore Government Securities (SGS) purchased via wholesale institutional tranche are cleared through MAS MEPS+ system and cannot be sold on SGX retail platform.
  2. Not Applicable for CPF OA/SA and SRS
 

Why Treasury Bills/Notes/Bonds?

Treasury Bills are debt obligation issued by the government to fund various public projects. These bills commonly have a short maturity from either 6 months to a year period or for those that has a longer tenor which are normally called notes/bonds. The maturity will tend to span from 2 – 50 years. These securities are widely regarded as low-risk and secure investments which is a good option for risk adverse investors who wish to park their idle funds to grow some interest.

 

How to trade SGS Bonds and US Treasuries with us? (Secondary Market)

Firstly login into your Poems account

 

Once you have logged into your Poems account, click on “Trade (LP2)” and select the Bonds tab

 

For secondary trading of Singapore Government Securities (SGS) Bonds:

  1. Click on the Issuer tab and select “Singapore Government”
  2. Currency select “SGD”

 

An array of SGS bonds that are currently trading on the market will be displayed.

 

Right click on a particular bond that you are interested in and click on “Trade XXXX”

 

Next, select Buy or Sell while indicating the Nominal Amount and Price that you are looking for and finally type in your password to place an order with us!

 

Likewise for secondary trading of US Treasuries:

  1. Click on the Issuer tab and select “US Treasury N/B”
  2. Currency select “USD”

 

A list of US treasury bonds that are currently trading on the market will be displayed.

 

Select the particular bond that you are interested in and click on “Trade XXXX”

 

Similar to SGS Bonds, select Buy or Sell while indicating the Nominal Amount and Price that you are looking for and finally type in your password to place an order with us!

 
 

After placing a Buy/Sell order, the bonds that you have selected will be reflected in your order status bar below

 

Or alternatively, you can view your order status within the “Order Status” tab

 

Video Tutorial – Navigate SGS Bonds and US Treasuries

 

How to buy Singapore Treasury Bills with us? (Primary Market)

Please contact your respective Trading Representative or Dealing team to place your bids in the primary market.

Contact us to Open an Account

Need Assistance? Share your Details and we’ll get back to you

IMPORTANT INFORMATION

This material is provided by Phillip Capital Management (S) Ltd (“PCM”) for general information only and does not constitute a recommendation, an offer to sell, or a solicitation of any offer to invest in any of the exchange-traded fund (“ETF”) or the unit trust (“Products”) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. You should read the Prospectus and the accompanying Product Highlights Sheet (“PHS”) for key features, key risks and other important information of the Products and obtain advice from a financial adviser (“FA“) pursuant to a separate engagement before making a commitment to invest in the Products. In the event that you choose not to obtain advice from a FA, you should assess whether the Products are suitable for you before proceeding to invest. A copy of the Prospectus and PHS are available from PCM, any of its Participating Dealers (“PDs“) for the ETF, or any of its authorised distributors for the unit trust managed by PCM.  

An ETF is not like a typical unit trust as the units of the ETF (the “Units“) are to be listed and traded like any share on the Singapore Exchange Securities Trading Limited (“SGX-ST”). Listing on the SGX-ST does not guarantee a liquid market for the Units which may be traded at prices above or below its NAV or may be suspended or delisted. Investors may buy or sell the Units on SGX-ST when it is listed. Investors cannot create or redeem Units directly with PCM and have no rights to request PCM to redeem or purchase their Units. Creation and redemption of Units are through PDs if investors are clients of the PDs, who have no obligation to agree to create or redeem Units on behalf of any investor and may impose terms and conditions in connection with such creation or redemption orders. Please refer to the Prospectus of the ETF for more details.  

Investments are subject to investment risks including the possible loss of the principal amount invested. The purchase of a unit in a fund is not the same as placing your money on deposit with a bank or deposit-taking company. There is no guarantee as to the amount of capital invested or return received. The value of the units and the income accruing to the units may fall or rise. Past performance is not necessarily indicative of the future or likely performance of the Products. There can be no assurance that investment objectives will be achieved.  

Where applicable, fund(s) may invest in financial derivatives and/or participate in securities lending and repurchase transactions for the purpose of hedging and/or efficient portfolio management, subject to the relevant regulatory requirements. PCM reserves the discretion to determine if currency exposure should be hedged actively, passively or not at all, in the best interest of the Products.  

The regular dividend distributions, out of either income and/or capital, are not guaranteed and subject to PCM’s discretion. Past payout yields and payments do not represent future payout yields and payments. Such dividend distributions will reduce the available capital for reinvestment and may result in an immediate decrease in the net asset value (“NAV”) of the Products. Please refer to <www.phillipfunds.com> for more information in relation to the dividend distributions.  

The information provided herein may be obtained or compiled from public and/or third party sources that PCM has no reason to believe are unreliable. Any opinion or view herein is an expression of belief of the individual author or the indicated source (as applicable) only. PCM makes no representation or warranty that such information is accurate, complete, verified or should be relied upon as such. The information does not constitute, and should not be used as a substitute for tax, legal or investment advice.  

The information herein are not for any person in any jurisdiction or country where such distribution or availability for use would contravene any applicable law or regulation or would subject PCM to any registration or licensing requirement in such jurisdiction or country. The Products is not offered to U.S. Persons. PhillipCapital Group of Companies, including PCM, their affiliates and/or their officers, directors and/or employees may own or have positions in the Products. Any member of the PhillipCapital Group of Companies may have acted upon or used the information, analyses and opinions herein before they have been published. 

This advertisement has not been reviewed by the Monetary Authority of Singapore.  

 

Phillip Capital Management (S) Ltd (Co. Reg. No. 199905233W)  
250 North Bridge Road #06-00, Raffles City Tower ,Singapore 179101 
Tel: (65) 6230 8133 Fax: (65) 65383066 www.phillipfunds.com