SBJAN23 GX23010Z results were announced today. The results came in a bit unexpected. I was allotted the full amount that I applied for. This month’s issue is so much different as compared to SBAUG22 whereby I was only partially allocated.
Besides using cash, I have also dumped all my money in SRS into this month’s issue of Singapore Savings Bond since I do not plan to withdraw the money anyway until my retirement age at 62.
If you look at the chart above, the effective interest rate for SBAUG22 is 3.0% as compared to SBJAN23 interest rate of 3.26% if you held the Singapore Savings Bond for 10 years. Is Singapore Savings Bond not attractive anymore?
In my opinion, I think that most investors had flocked to purchase Treasury Bills as the recent issue of the Treasure Bill is at least 4.28% for 6 months.
Unless you are very rich, if you applied for S$173,000 or higher, you would be allotted either S$172,500 or S$173,000. But anyway, the maximum investment allowed into Singapore Savings Bond is $200,000.
Below are the details of the results.
|Total amount applied||S$909.7 million|
|Total amount within individual allotment limits||S$902.1 million|
|Total amount allotted||S$900.0 million|
|Quantity ceiling||This Savings Bond was allotted using the Quantity Ceiling format. Applicants who applied for S$172,500 or lower were fully allotted, subject to the individual allotment limits.|
Applicants who applied for S$173,000 or higher were allotted either S$172,500 or S$173,000.
Approximately 95.93% of these applicants were selected at random and allotted the additional S$500.
Hi – why are you buying SSB when the t-bills offer higher yield now?
Just personal preference. Anyway the yield is not that much higher.