5-year Singapore government bond (SGS) yield rises to 2.09% in 28 October auction

.What happened?

The results of the latest 5-year SGS bond auction are out.

The new 5-year Singapore Government Securities bond (N526100H) offered a cut-off yield of 2.09% in the auction on 28 October 2026.

This is slightly higher than the 5-year benchmark SGS yield of 2.08% on 27 October 2026.

Following our previous article sharing about the 5-year SGS bond, I have seen a fair amount of discussion in the Beansprout community about the auction. 

In this article, I will look at what drove the latest SGS bond auction result, what the result means for successful applicants, and whether there are better alternatives to park our cash.

What we learnt from the latest 5-year SGS bond auction

#1 – Demand for the SGS bond remained healthy

Investors applied for S$6.8 billion of the new 5-year SGS bond (N526100H), compared with the S$3.2 billion allotted.

This represents a bid-to-cover ratio of 2.11 times.

The bid-to-cover ratio was slightly lower than the 2.19 times seen in the previous 5-year SGS bond auction in June.

The amount allotted to non-competitive applications was S$454.5 million.

As non-competitive applications were within the allocation limit, all eligible non-competitive bids received a full allocation.

Investors who submitted competitive bids below the cut-off yield of 2.09% would also receive their requested allocation.

Competitive bids submitted at exactly 2.09% received approximately 57% of the amount applied for, while bids above the cut-off yield were not allotted.

#2 – The cut-off yield rose to 2.09%

The cut-off yield for the new 5-year SGS bond (N526100H) was 2.09%.

This is up from the cut-off yield of 1.75% in the previous 5-year SGS auction in June 2026.

The median yield submitted was 2.05%, while the average yield was 1.92%.

The cut-off yield was slightly below the 2.14% closing yield on 22 October, which we highlighted ahead of the auction.

However, it was broadly in line with the higher Singapore government bond yields seen leading up to the auction.

The rise from the previous 5-year SGS auction also reflects how longer-term Singapore government bond yields have moved higher in recent months.

#3 – Investors paid slightly less than the principal they will receive at maturity

The new SGS bond (N526100H) has a coupon rate of 2.00% per year.

However, this does not mean successful applicants will earn a return of 2.00% per year.

The cut-off price was S$99.575 for every S$100 in principal.

This means an investor allotted S$1,000 in principal would pay approximately S$995.75.

Investors will receive the first S$10.00 coupon payment on 1 May 2027 for every S$1,000 in principal held, and will continue to receive S$10.00 every six months thereafter.

When the bond matures on 1 November 2031, investors will receive the full S$1,000 in principal.

As the cut-off price is slightly below the principal amount that will eventually be repaid, investors also earn a small gain if they hold the bond to maturity.

After taking into account the purchase price, coupon payments and principal repayment, the yield would be 2.09% per year if the bond is held until maturity, rather than simply its 2.00% coupon rate.

What would Beansprout do? 

The latest 5-year Singapore Government Securities bond auction offers a cut-off yield of 2.09%.

The 5-year SGS bond may offer a higher yield compared to the 6-month T-bill. However, it also requires a longer commitment period, and I would be mindful about potential losses if I decide to sell the bond before maturity. 

This makes the 5-year SGS bond less likely to be something I'd consider for my Liquidity Pot within Beansprout's four pots of wealth.

For my Liquidity Pot, I would still prefer shorter-term or more flexible options such as the 6-month T-bill, 1-year T-bill or Singapore Savings Bonds (SSBs).

I compare savings accounts, fixed deposits, T-bills, SSBs and money market funds to find the best places to park your cash in October 2026 here.

The 2.09% yield is lower than the 2.45% 10-year average return on the current Singapore Savings Bond issuance. SSBs also offer greater flexibility, as they can be redeemed before maturity without being exposed to fluctuations in their market price.

Ultimately, the best option depends on whether I prioritise a slightly higher locked-in yield today, or greater flexibility for my cash.

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Longbridge is running a promotion offering 10% p.a. interest boost on S$3,600 with Longbridge Cash Plus for 90 days (worth up to S$88). Also, get a free S$80 Fairprice voucher within 5 working days when you sign up for a Longbridge account via Beansprout. Promo ends on 31 October 2026. Learn more about the Longbridge promo here.

If you prefer a shorter investment period and are comfortable holding your investment until maturity, you may consider Singapore T-bills. Read our guide to T-bills to learn how they work and how to apply.

If you value the flexibility to redeem your investment in any month without being exposed to market price movements, you may consider Singapore Savings Bonds instead. Read our SSB guide to know more. 

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