July 2023’s Government Bonds: 2.99% P.A. August 2023 SSB, 5-year SGS Bond and 3 T-Bills

August 2023’s Singapore Savings Bond (SSB) sees an average return of 2.99% p.a. for its 10-year period. Rates are almost completely flat and first-year interest is already 2.97%, so you get nearly 3% p.a. regardless of how long you hold the bond for. This is an uptick in rates from last month’s July 2023 SSB.

Also, there are 3 T-Bills whose auction dates fall on this month, including one of only 4 1-year t-bills for the year of 2023.

August 2023 SSB

Year from issue date12345678910
Interest %2.972.972.972.972.972.972.973.023.043.04
Average return per year %*2.972.972.972.972.972.972.972.982.982.99

SBAUG23 GX23080N Bond Details

The rates of August 2023 SSB looks similar to that in May 2023 which was nearly oversubscribed. SSbs haven’t been oversubscribed in a while, with April 2023’s SSB being the last time this happened. Given the similar rates, August’s SSB may prove popular too with individuals looking for a low-risk way to grow their funds.

Past SSB Rates

Past SSBs

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
June 20232.81 2.81 2.81 2.81 2.81 2.81 2.81 2.81 2.81 2.81
July 20232.76 2.76 2.76 2.76 2.76 2.76 2.76 2.78 2.81 2.82
August 20232.97 2.97 2.97 2.97 2.97 2.97 2.97 2.98 2.98 2.99
September 20233.01 3.01 3.01 3.01 3.01 3.01 3.01 3.02 3.04 3.06
October 20233.05 3.05 3.05 3.05 3.05 3.05 3.06 3.09 3.13 3.16
November 20233.21 3.21 3.21 3.21 3.21 3.21 3.22 3.25 3.29 3.32
December 20233.30 3.30 3.30 3.30 3.30 3.30 3.31 3.34 3.37 3.40
January 20243.00 3.00 3.00 3.00 3.00 3.00 3.00 3.02 3.05 3.07
February 20242.72 2.72 2.72 2.72 2.72 2.72 2.72 2.75 2.78 2.81
March 20242.74 2.74 2.74 2.74 2.74 2.74 2.75 2.79 2.84 2.88
April 20242.95 2.95 2.95 2.95 2.95 2.95 2.96 2.99 3.02 3.04
See More Past SSBs

Year From Issue Date12345678910
May 20220.861.491.721.841.911.962.012.042.062.09
Jun 20221.431.922.162.302.372.432.462.492.512.53
Jul 20221.692.162.372.472.542.602.632.662.692.71
Aug 20222.002.422.632.742.822.882.922.952.973.00
Sep 20222.632.672.682.692.692.712.732.752.782.80
Oct 20222.602.602.602.622.642.662.682.702.732.75
Nov 20223.083.113.143.153.163.173.183.193.203.21
Dec 20223.263.263.273.343.393.423.443.453.463.47
Jan 20232.952.952.953.023.093.133.163.193.233.26
Feb 20232.842.842.842.842.842.842.862.902.942.97
Mar 20232.762.762.762.762.762.762.782.822.862.90
Apr 20233.013.013.013.013.013.013.033.073.123.15
May 20233.033.033.033.033.033.033.033.043.063.07

Average return per year %

3 t-bills up for subscription this month, and one SGS bond

For the month of July 2023, there are 3 t-bills to subscribe. 2 of them are the usual 6-month variants, while one is a rare 1-year t-bill. There is also a 5-year SGS bond to

TypeAnnouncement DateAuction DateTenure
T-bill28th June 20236th July 20236-month
T-bill13th July 202320th July 20236-month
T-bill20th July 202327th July 20231-year
SGS Bond20th July 202327th July 20235-year

The latest 6-month t-bill had a pretty high cut-off yield of 3.89% p.a. 6-month t-bills will likely continue to be a popular way to set aside savings for a short term. For those who wish to set aside their funds for a longer time, they may consider subscribing the 1-year t-bill which is the 3rd of 4 1-year t-bills this year.

Finally, there is also a 5-year SGS bond to subscribe later this month. It should be slightly higher in rates than this month’s SSB, although I wonder whether losing liquidity for a little more returns is worth it.

Remember, you can easily redeem your SSB any month you wish with no capital loss, and returns are given to you on a pro-rated basis.

Conversely, SGS bonds and t-bills have to be sold in the open market. The trading volume tends to be low so you might have trouble selling your bond without capital loss. Even at a discount, it may not be an easy thing to find a buyer for your bond.

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