MAS announced details of new benchmark 10Y auction.
Issue size: SGD1.8bn
MAS intended Tender : SGD 300mio
ISIN Code : SG3260987684
Auction Date: 26 Jun 2013
Settlement Date: 1 July 2013
Maturity Date : 1 July 2023
Net auction size SGD 1.5 bio versus a maturity of SGS Jul 2013 of SGD 6.2 bio.
That is quite a decent shortfall.
Current 10Y bond last done at 2.27%. CPF Ordinary Account giving 2.5% or 10Y yield depending on which is higher.
Credit spreads still refusing to give up their gains on the year when the real world is widening out. Suspect prices are just for display only. Is nothing safe anymore ?
Trade Recommendation : To buy on scarcity value and safe haven status on economic slowdown.