SINGAPORE BOND MARKET MECHANICS
SGS Auctions
SGS Auction Tail
A practical way to read the distance between marginal SGS auction pricing and the centre of demand.
MECHANISM
An auction tail can be studied by comparing the cut-off yield with average or median accepted yields and with prevailing secondary-market levels. The concept helps distinguish a strongly centred auction from one that clears at a more expensive marginal level.
WHAT TO MONITOR
Track the cut-off-minus-average and cut-off-minus-median yield gaps through time rather than relying on one auction.
Primary-source starting points: Monetary Authority of Singapore — Bonds and Bills and Singapore Ministry of Finance — Assets and Liabilities. Source availability varies by mechanism.
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