15-year SGS bond auction: Cut-off yield rises to 2.65% on 28 September

What happened?

The results of the latest 15-year SGS bond auction are out.

The reopened 15-year Singapore Government Securities bond (NY25200N) offered a cut-off yield of 2.65% in the auction on 28 September 2026.

We also saw the 10-year SGS bond cut-off yield rise to 2.30% in August, before looking at what to expect from the latest 15-year SGS bond auction

I have also noticed more discussion in the Beansprout community around bonds and T-bills recently, as bond yields have moved higher.

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 15-year SGS bond auction

#1 – SGS bond demand exceeded supply but was lower than before

Investors applied for S$2.1 billion of the reopened 15-year SGS bond (NY25200N), compared with the S$1.3 billion allotted.

This represents a bid-to-cover ratio of 1.6 times.

The amount allotted to non-competitive applications was S$44.5 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 2.65% would also receive their requested allocation.

Competitive bids submitted at exactly 2.65% received approximately 55% of the amount applied for, while bids above the cut-off yield were not allotted.

#2 – The cut-off yield rose to 2.65%

The cut-off yield for the reopened 15-year SGS bond (NY25200N) was 2.65%.

This is higher than the 2.51% closing yield in the same SGS bond on 25 September 2026.

It is also above the 2.35% cut-off yield when the same NY25200N bond was first issued at its original auction in June 2025.

Although NY25200N was originally issued as a 15-year bond, it now has about 13 years and 9 months remaining until maturity on 1 July 2040, and is currently designated by MAS as the benchmark 15-year SGS bond.

The median yield submitted was 2.59%, while the average yield was 2.55%.

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

The reopened SGS bond (NY25200N) has a coupon rate of 2.25% per year.

However, this does not mean successful applicants will earn a return of 2.25% per year.

The cut-off price was S$95.976 for every S$100 in principal.

This means an investor allotted S$1,000 in principal would pay approximately S$959.76 which includes accrued interest.

Because this is a reopened bond, successful applicants will also have to pay 92 days of accrued interest included in the cut-off price.

For every S$1,000 in principal, this works out to about S$5.63 in accrued interest, which is included inside the S$959.76.

This is because the bond's current coupon period started on 1 July 2026, while successful applicants will only receive the bond on 1 October 2026.

Investors will still receive the full S$11.25 coupon payment on 1 January 2027 for every S$1,000 in principal held, and will continue to receive S$11.25 every six months thereafter.

When the bond matures on 1 July 2040, 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 2.65% per year if the bond is held until maturity, rather than simply its 2.25% coupon rate.

What would Beansprout do? 

The latest 15-year Singapore Government Securities bond auction offers a cut-off yield of 2.65%.

The 15-year SGS bond may offer a higher yield compared to the 6-month T-bill and fixed deposit. 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 15-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 September 2026 here.

The 2.65% yield is higher than the projected 2.44% 10-year average return on the next Singapore Savings Bond issuance. However, 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.

Don't miss out on the next T-bill

Sign up to receive a free email reminder when the next Singapore T-bill auction is open.

Subscription preferences

• Reminder for Tbill

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. 

Enjoyed this insight? Follow Beansprout on Telegram, Youtube, Facebook and Instagram, and add Beansprout as your preferred source on Google so you never miss an update.