$1.1bn 20-year SGS bonds to attract insurers if yield exceeds 3.45%

But, the SGS bond is currently yielding only around 3.33 percent.

According to OCBC, the $1.1b re-opening of the 20-year SGS bonds maturing September 2030 will be auctioned on Thursday. The auction may see a bid-cover ratio between the 1.77x (Feb'08 sale of $1.3b) and 2.37x (Feb'09 sale of $0.7b) range, and any yield above 3.45% is likely to attract the insurers, albeit there are concerns about the inflation overshoot.

The 2011 official CPI forecast was upgraded from 2-3% to 3-4%, with 6% possible in Q1. We see fair value yield around 3.45% as well, based on historical bond-swap spreads, and do not expect the tail to exceed the average 9bps seen in the last four 20-year SGS bond auctions from 2007. The next scheduled SGS bond auction is the new 5-year on 1 April.

Reaching the people who run Asia's businesses is harder than it used to be.

Inboxes are crowded. Attention is short. The executives you most want to reach — the founders, CFOs, and operators who actually move budgets — are the hardest to find through the usual channels. If you're building a company, a category, or a reputation, you already know this.

We've spent twenty years building the room they read. Singapore Business Review is where senior decision makers in Singapore and across Southeast Asia come for business coverage they can't get elsewhere — in print, online, and in person at the summits and roundtables we host across seven markets.

If you have something these readers should know about — a point of view worth publishing, a product worth their attention, an event worth their time — we'd like to hear what you're trying to do.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia