March 2024’s Government Bonds: April 2024 SSB, T-Bills, and 5-Year SGS Bond

We can now subscribe for April 2024’s Savings Bond (SSB)! Rates have been going up for the past couple of months so this might be something of interest. In March, we can also apply for the usual two 6-month t-bills and a 5-year Singapore Government Securities (SGS) bond.

April 2024 SSB – rates up, crossing 3% p.a. returns

Year from issue date12345678910
Interest %2.952.952.952.952.952.953.043.193.283.28
Average return per year %2.952.952.952.952.952.952.962.993.023.04
SBAPR24 GX24040Z Bond Details

Returns for April 2024’s SSB has once again crossed the 3% p.a. mark as long as you hold the bond for at least 9 years. The last time the bond crossed this mark was for January 2024’s SSB. In the shorter term, yields are at least 2.95% p.a. which is just a hair short of 3%.

January 2024’s SSB had a S$1.1 billion tranche of which S$853 million was allotted at that time. This month’s tranche is $900 million so I’m thinking that undersubscription is not very likely.

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 5-year SGS Bond

Announcement DateAuction DateIssue DateMaturity DateTenorIssue CodeType
07 Mar 202414 Mar 202419 Mar 202417 Sep 20246-monthBS24105XT-bill
20 Mar 202427 Mar 202402 Apr 202401 Oct 20246-monthBS24106WT-bill
20 Mar 202426 Mar 202401 Apr 202401 Apr 20295-yearN524100XSGS Bond

The most recent 6-month t-bill had a cut-off yield of 3.8% p.a. which gives some hope that rates will continue to be competitive. Idle CPF Ordinary Account funds can earn a higher return here compared to the 2.5% p.a. they get.

For the 5-year SGS bond, we can take reference from a very recent auction of another 5-year SGS bond that closed at 3.09% p.a. cut-off yield. Given that the rates are not very much higher than that of April 2024’s SSB, I would prefer SSB instead given that it is significantly more liquid. Note that both t-bills and SGS bonds need to be resold on the secondary market if you wish to cash out, and you may have to sell it below what you bought the bond for. You might also find it difficult to sell the bond which may not be that much of a problem for t-bills that mature in 6 months, but can pose liquidity issues when we are talking about a 5-year bond.

Nonetheless, the 5-year SGS bond may be a good option for those who are certain that they only need the funds 5 years later and have already exceeded the S$200,000 per individual limit of SSB.

Conclusion

Singapore government bonds continue to be a viable avenue to place some savings at for steady returns, particularly for a longer time period.

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