February 2024’s Government Bonds: March 2024 SSB, T-Bills, 2-year and 20-Year SGS Bonds

March 2024’s Savings Bond (SSB) is now up for subscription in the month of February 2024. On top of that, there is the usual 6-month t-bills (two of them) and a 20-year Singapore Government Securities (SGS) bond up for subscription.

Here are more details on the Singapore government bonds you can apply for this month:

March 2024 SSB – rates increase slightly

Year from issue date12345678910
Interest %2.742.742.742.742.742.742.843.123.263.26
Average return per year %2.742.742.742.742.742.742.752.792.842.88
SBMAR24 GX24030V Bond Details

Last month’s SSB wasn’t too appealing, giving average returns of 2.72% p.a. to 2.81% p.a. depending on how you hold the bond for. The S$900 million tranche saw merely S$175.2 million allotted.

This month’s rates are ever so slightly up, with 2.74% p.a. average return if you hold the bond for anywhere between 1 to 6 years. At its maximum tenure, it gives an average 2.88% p.a. return over the 10 years.

The tranche size is smaller at S$800 million, although looking at last month’s severe undersubscription, it is very unlikely for the bond to be oversubscribed. One should hence be able to get as much as they subscribe for, subject to the overall S$200,000 limit per individual across all SSBs they own.

Tap here if you want to see rates of older SSBs over the past couple of years.

Seth
Seth

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T-bills and SGS bonds

Announcement DateAuction DateIssue DateMaturity DateTenorIssue CodeType
07 Feb 202415 Feb 202420 Feb 202420 Aug 20246-monthBS24103HT-bill
22 Feb 202429 Feb 202405 Mar 202403 Sep 20246-monthBS24104TT-bill
21 Feb 202427 Feb 202401 Mar 202401 Sep 20272-yearN522100NSGS Bond
21 Feb 202427 Feb 202401 Mar 202401 Mar 204620-yearNA16100HSGS Bond

Two 6-month t-bills

The usual pair of 6-month t-bills are up for application this month. For BS24104T, its auction date is 29th February 2024 with the issue date on 5th March 2024. When the auction and issue dates cross months like this, it is usually not advisable to use CPF funds to buy the t-bill because you might lose interest from your CPF for 8 months instead of the usual 7 months.

In this case, it might not be so much of a concern as I believe the deduction of CPF funds will likely take place earliest 1 day after 29th February 2024 on 1st March 2024. This means that the funds will miss out on CPF interest from March 2024 to September 2024 which is just 7 months. If the deduction takes place on 29th February 2024, the funds will also lose interest for the whole of February 2024.

Just to be safe, if you are looking to buy t-bill with your CPF, you should consider the first t-bill with the auction date of 15th February 2024 instead.

2 or 20-year SGS bond anyone?

The last time we had a 20-year bond was in March 2023 and that gave a cut-off yield of 2.8% p.a. A few months ago, we had a 30-year bond auction that closed at 3.11% p.a.

A 2-year SGS bond is also available for subscription. The latest one had a cut-off yield of 3.04% p.a. late last month. That is slightly better than SSB for 2 years, though SGS bonds are not anywhere close in terms of liquidity to SSB. You can redeem SSB and get your cash – capital and return guaranteed – at the start of the next month, while you will need to sell SGS bonds in the open market. From what I hear, it’s usually difficult to sell or you have to sell at a loss, so only commit to SGS bonds if you are ready to hold it for the entire tenure.

Looking at savings promos

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