2-year SGS bond yield at 1.84% in latest 29 July auction

What happened?

The results of the latest reopened 2-year SGS bond auction are out.

The reopened 2-year Singapore Government Securities bond (N524100X) offered a cut-off yield of 1.84% in the auction on 29 July 2026.

Following our previous article sharing about the 2-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 and whether there are better alternatives to park our cash.

What we learnt from the latest 2-year SGS bond auction

#1 – Demand for the SGS bond remained healthy

Investors applied for S$6.64 billion of the reopened 2-year SGS bond (N524100X), compared with the S$3.0 billion offered.

This represents a bid-to-cover ratio of 2.21 times, meaning the amount applied for was more than twice the amount available.

The amount allotted to non-competitive applications was S$447.8 million.

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

Investors who submitted a competitive bid below the cut-off yield of 1.84% would also receive their requested allocation.

Competitive bids submitted at exactly 1.84% received 27.32% of the amount applied for, while bids above the cut-off yield were not allotted.

#2 – The cut-off yield was broadly in line with market yields

The cut-off yield for the 2-year SGS bond (N524100X) was 1.84%.

This was broadly in line with 2-year Singapore government bond closing yield. 

However, it is worth noting that the bond N524100X has about two years and eight months remaining until it matures on 1 April 2029, which is longer than the benchmark 2-year SGS bond.

The median yield submitted was 1.80%, while the average yield was 1.69%.

The median yield being close to the cut-off yield suggests that many investors submitted bids around prevailing market levels.

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

The reopened 2-year SGS bond (N524100X) has a coupon rate of 3.00% per year.

However, this does not mean successful applicants will earn a return of 3.00% per year.

The cut-off price was S$104.014 for every S$100 in principal.

This means an investor allotted S$1,000 in principal would pay approximately S$1,040.14.

The S$104.014 price includes the interest that had accumulated since the previous coupon date on 1 April 2026.

Successful applicants will receive the full coupon payment on 1 October 2026, even though the reopened bond will only be issued to them on 3 August.

Investors will continue to receive S$15 every six months for every S$1,000 in principal held.

However, only S$1,000 in principal will be returned when the bond matures on 1 April 2029.

The difference between the amount paid and the principal returned reduces the actual return earned.

After taking into account the purchase price, coupon payments and principal repayment, the yield would be 1.84% per year if the bond is held until maturity, rather than its 3.00% coupon rate.

What would Beansprout do? 

The latest 2-year Singapore Government Securities bond auction (N524100X) offers a yield of 1.84%.

The 1.84% yield is higher than the latest 1-year T-bill yield of 1.68%, the latest 6-month T-bill yield of 1.55% and the best 1-year fixed deposit rate we found of around 1.60% per year.

However, I would consider the SGS bond for cash that I am comfortable setting aside until it matures in April 2029 within my Liquidity Pot. 

This is because there is liquidity risk, and I may suffer potential losses if I decide to sell the bond before maturity. 

Within my Liquidity Pot within Beansprout's four pots of wealth, I would still prefer shorter-term options such as the 6-month T-bill or the 1-year T-bill instead.  Find out what yield to expect from the upcoming 6-month T-bill auction on 30 July 2026 here.

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

For my Income Pot, a yield of 1.84% would be below my benchmark for generating passive income over the longer term.

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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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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