Secondary Market Bonds Singapore
Singapore investors can buy and sell SGS bonds, corporate bonds, and T-bills after their primary issuance — here is how the secondary bond market works.
For informational purposes only — not financial advice.
What Is the Secondary Bond Market?
The secondary bond market is where investors trade bonds after their initial issuance. In Singapore, listed bonds (SGS, some corporate bonds) trade on SGX; institutional bonds trade OTC. It provides liquidity, price discovery, and portfolio rebalancing flexibility.
How to Access Secondary Market Bonds in Singapore
- SGX Bond Market: Listed bonds tradeable via brokerage accounts like shares. Min. lot sizes typically S$1,000.
- Singapore Savings Bonds (SSB): Redeemable at par any month directly with MAS — no price risk secondary market.
- FSMOne / Endowus: Bond funds and ETFs without buying individual bonds. Use our FSMOne referral code.
- Private banking: OTC bonds (min S$200,000–S$250,000 face value) for accredited investors.
Bond Prices and Yield in the Secondary Market
Bond prices and yields move inversely: when interest rates rise, existing bond prices fall (their fixed coupon looks less attractive vs new higher-rate bonds). Example: a 3% coupon bond falls to ~S$90 per S$100 face value if new bonds are issued at 4%, restoring yield parity. Key metrics: current yield (coupon ÷ price) and yield to maturity (YTM) (total return if held to maturity). Use our Bond YTM Calculator.
Singapore Government Securities (SGS) in Secondary Market
SGS bonds (2–30 year) trade on SGX and OTC — risk-free, highly liquid. T-bills (6-month, 1-year) are harder to trade secondarily; most retail investors hold to maturity. See T-Bill Singapore and Singapore Savings Bonds.
Corporate Bonds in Singapore’s Secondary Market
Most corporate bonds have min. face value S$250,000 — inaccessible to retail investors without bond funds or ETFs. Some are SGX-listed at S$1,000 lots. Credit risk is the primary additional risk vs government bonds — assess issuer credit ratings (Moody’s, S&P, Fitch). Liquidity can be thin for smaller issuers. See Corporate Bonds Singapore.
Frequently Asked Questions
What is the secondary bond market in Singapore?
The secondary market is where bonds are traded after initial issuance. Listed bonds trade on SGX; institutional bonds trade OTC. Secondary market prices fluctuate with interest rate movements and credit conditions.
Can retail investors buy SGS bonds in the secondary market?
Yes. SGS bonds are listed on SGX and can be bought via brokerage accounts. SSBs can be redeemed at par any month via MAS. T-bills are typically held to maturity by retail investors.
Why do bond prices fall when interest rates rise?
When new bonds offer higher coupons, existing bonds with lower coupons become less attractive. Their prices fall until the effective yield matches the new market rate — the fundamental inverse price-yield relationship.
What is yield to maturity (YTM)?
YTM is the total return if you buy a bond at its current market price and hold it to maturity, accounting for coupon payments and any price gain/loss. It is the most comprehensive return measure for secondary market bonds.
How liquid are corporate bonds in Singapore?
SGS bonds are highly liquid. Investment-grade corporate bonds from large issuers have reasonable liquidity. Smaller corporate bonds can have wide bid-ask spreads and thin trading volume.
Explore More Singapore Investing Resources
Browse our Singapore Investing Glossary or use our financial calculators.