April 2024’s Government Bonds: May 2024 SSB, T-Bills, and 10-Year SGS Bond

We started April with lots of nerfs to banking products so it is probably timely that we look at the bond offerings of our very own government. May 2024’s Singapore Savings Bond (SSB) is now available for subscription, on top of the usual two 6-month t-bills as well as a 10-year Singapore Government Securities (SGS) bond.

May 2024 SSB – rates tiny bit up, 2.99% to 3.06% p.a. average returns

Year from issue date12345678910
Interest %2.992.992.992.992.992.993.033.203.273.27
Average return per year %2.992.992.992.992.992.993.003.023.043.06
SBMAY24 GX24050X Bond Details

Returns for May 2024 are 2.99% p.a. in the shorter term with average returns going to a maximum of 3.06% p.a. for the full 10-year tenure. The tranche size is S$900 million which is the same as last month’s.

April 2024’s SSB had S$292.1 million applied, just shy of a third of its S$900 million tranche. While this month’s rates are nearly identical, I suspect subscription would be significantly higher given that bank rates are falling and the gap between the returns from high-yield savings account and SSBs is narrowing.

Tap here if you want to see rates of older SSBs over the past couple of years and stay subscribed for future updates.

6-month t-bills and 10-year SGS bond

Announcement DateAuction DateIssue DateMaturity DateTenorIssue CodeType
03 Apr 202411 Apr 202416 Apr 202415 Oct 20246-monthBS24107NT-bill
18 Apr 202425 Apr 202430 Apr 202429 Oct 20246-monthBS24108VT-bill
22 Apr 202426 Apr 202402 May 202401 May 203410-yearNX24100TSGS Bond

As usual, two 6-month t-bills are up for subscription. For reference, the latest 6-month t-bill closed at 3.80% p.a. and we can probably expect similar rates in the near future.

A 10-year SGS bond is also available for subscription although I don’t think it offers much benefit over this month’s SSB. Compared to SSB, SGS bonds are a lot less liquid because there is no withdrawal feature unlike SSB. You have to resell the SGS bond in the resale market which can be a difficult thing to do and even if you manage to sell you may not be able to sell it at what you bought it for. One of the only advantages I can see for the SGS bond is that it does not have a S$200,000 cap like SSB and thus it is suited more for investors with a lot more cash to deploy.

This month’s bonds will be interesting to watch

With bank rates going down rather significantly (see UOB One, Bonus$aver), it’d be interesting to see whether there is a stronger uptake in government bonds. Are we going back to the days where SSBs are oversubscribed again?

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