SEE: Investment opportunities arise from sell-off in Singapore Government Securities, says DBS
The bonds will also widen the investor base and perhaps enhance liquidity depth of SGD bonds, it adds. Maybank KE expects the issuance size of the SINGA bonds to be similar to SGS.
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The actual tenor, nevertheless, will be subject to market demand, it notes. Extending the SGS curve beyond the 30-year point is also a possibility, if market conditions permit, says Maybank KE. Currently, the longest maturity bond in the SGD market is a 40-year bond issued by the Land Transport Authority (LTA). In the US dollar space, the longest maturity was issued by Temasek with a 50-year tenor last October.