10-year average return for Singapore Savings Bonds rewrites record high at 3.47%

https://www.channelnewsasia.com/singapore/s...ecember-3036231

SINGAPORE: Returns on the Singapore Savings Bonds hit record highs for the second straight month, with the latest December issue offering a 10-year average return rate of 3.47 per cent.

The first-year interest rate of 3.26 per cent is also the highest ever, beating the record set in the previous issue, according to information from the Monetary Authority of Singapore released on Tuesday (Nov 1) afternoon.


The Singapore Savings Bonds are a type of Singapore Government Securities (SGS), meaning they are issued and fully backed by the Singapore Government.

They were first rolled out in 2015 to provide retail investors with a flexible and risk-free investment option. About 120,000 individuals hold more than S$5.7 billion worth of savings bonds as at the start of 2022.

New tranches of the Singapore Savings Bonds are released at the start of each month, with fixed interest rates that step up for each year they are held and locked in for 10 years.

The interest rates of each issuance are based on the average SGS yields in the month before applications open. These yields have been on an uptrend like all other major economies’ bond yields, as global central banks raise interest rates.

The previous record highs for returns were set last month when the 10-year average return hit 3.21 per cent and the first-year interest rate touched 3.08 per cent. That issue received applications worth S$2.2 billion, outstripping the S$900 million worth of bonds issued.

You mentioned T bill 26 May was 1.8%.

Most recent T bill 27 Oct already 4.19%!

Interest rate is fast rising! Glad i subscribed the 4.19% T bill. Planning to subscribe the next T bill 10 Nov auction.

This post has been edited by ikanbilis: Nov 3 2022, 01:13 PM

Oh didn't know there's an SSB thread here. Next time will post all SSB stuffs over here.

It would be nice if you can change title to T-bills and SSB rather than just SSB so we can discuss both products here rather than just SSB.

This post has been edited by TOS: Nov 3 2022, 01:04 PM

how a person in MY buys SSB ...

ikanbilis Make sure you add these 2 HWZ threads to your first post so that prospective SSB and T-bill applicants can access the materials easily.

HWZ SSB thread: https://forums.hardwarezone.com.sg/threads/...006693/page-501

HWZ T-bills thread: https://forums.hardwarezone.com.sg/threads/...769601/page-321

You need to open a CDP account in Singapore first, which requires you to have the following documents:

1. Malaysia NRIC/passport

2. Work Pass/Student Pass

3. Mailing and residential address in Singapore, proven by an MAS-license bank statement (usually DBS, UOB or OCBC) or IRAS tax assessment document

Source: https://www.sgx.com/securities/retail-inves...urities-account

You may submit your application here: https://investors.sgx.com/cdp-account-openi...line-form-intro

Sporeans and PR can directly sign up using MyInfo.

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After opening a CDP account, you need to activate Direct-Crediting Service to receive coupon/interest payments, which requires you to have at least one of the following SGD bank accounts:

Citibank
DBS/POSB
HSBC
Maybank
OCBC
Standard Chartered Bank
UOB

Source: https://www.sgx.com/securities/retail-investor/cdp-faqs

Thanks for the reply.
But i don't have 2 and 3 ....
which is kinda sucks.

Ok, let me suggest you some possible solutions.

1. On pass, all student passes and any of the following work passes will work: https://www.mom.gov.sg/passes-and-permits

It does not matter if you just stay for 1-2 months for a short-term training/student exchange etc., as long as it's under the above pass, it's accepted.

The key thing here is the FIN number which you need to fill up your CDP application form. And only "passes" will give you the FIN number.

Once the pass expires, you can just update CDP with your Malaysian TIN number (your MY income tax number) using the "Update Account Particulars" form here: https://www.sgx.com/securities/retail-investor/cdp-forms and tell CDP to cancel your earlier FIN number. I can share more details if necessary. You get to keep your CDP account after the pass expires.

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2. On address, if you have relative in Singapore and is in a study exchange/short-term work training programme etc., you may use your relative's SG address to open your SG bank account first, then use the same address to apply for CDP account since the bank statements will show an SG address on it.

An SG address is also important for opening a DBS/UOB/OCBC SG bank account which are the only means of purchasing SSB/T-bills for a retail investor.

Try looking for friends/relatives you can trust and obtain their approval to use their address. Then, get the SG company/university/school to validate the residential address in a formal letter which can then be used as proof to open DBS/UOB/OCBC bank account. Once bank account is opened and with your pass, you are 100% guaranteed of successful CDP account opening, even if the pass is invalid or cancelled in the midst of CDP account opening (since as stated in 1. above, you can always change the tax status as needed).

If you are working, try hard to look for jobs in SG. If you are a student, never give up any chance of a student exchange or further studies in a Singapore university. Good luck.

This post has been edited by TOS: Nov 3 2022, 05:51 PM

It's still early even though it's a little less than 1 week away. Need to monitor US 6-month yield movements as always.

I do see some on HWZ claiming to bid at 4.5 to 4.6% p.a using their CPF OA monies.

I shall wait for next Tuesday's 4-week and 12-week MAS bill auction results to make the final decision.

...tq bro,... problem is,... after it has matured, what do we do with the funds returned to us ? Perhaps too late to go into REITs and stocks,... and by then, interest rates could have pivotted. Then we're stuck with a lot of money in-hand,...

You can... reinvest those funds into new issues of T-bills...and wait for the next downturn...

They call it "laddering". The most conservative bond investment strategy.

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I have been looking at short-term deposit solutions to solve the "6-month-too-long" issue.

I presume you are in SG most of the time? If so, you can open as many SG FD accounts as you like with the banks found via this tool: https://sgfd.neocities.org/

And last time mentioned about MAS Bill via institutions, that's one avenue to consider too.

Recently, I am looking at USD FD deposits. DBS/UOB has USD FD deposits for short tenures of 1-3 months. The minimum deposit is 5k USD (UOB) and 5k SGD (DBS). You can use IBKR-DBS Remit to move money in and out in USD and other currencies. But you may only do so once a month due to IBKR's monthly withdrawal limit.

There is another thing you can consider trying: US Corporate Bonds with min 2k USD, subsequently 1k USD-interval denomination.

Pick the AAA/super strong ones like AAPL, MSFT and JNJ. Choose maturity 1-2 months away. Only 1-2 USD commissions per trade. Check the coupons though. Make sure they are comparable with prevailing rates.

I have checked their reactions during crises. Still some very small spikes, but good enough substitutes, if you are fine with it.



This is one example:

https://bondfacts.finra.org/AAPL4562449?

You can see from this link that the bid/ask spread has widen this year, resulting in larger difference in daily yields: https://finra-markets.morningstar.com/BondC...cusip=037833DE7

You may calculate the dirty price here, which included the accued interests: https://www.bondsupermart.com/bsm/bond-fact...et/US037833DE71

And there's some chance of little capital gain if you bid a low enough price: https://finra-markets.morningstar.com/BondC...=11%2F04%2F2022 (arrange by yield descending from the largest to the smallest)



This post has been edited by TOS: Nov 7 2022, 10:16 AM

I will do the ladder strategy for the T-bill as well. Spread my T-bills into 13 tranches so that my ladder would complete by 2 May 2023.

You are very rich... That's 13k SGD in total at the minimum...

Please dont say that. There are a lot of rich sifus in lowyat. Im only ikan bilis.

#usernamecheckout

Tq for all your replies, bro,... Yes, I'm already into USD FDs with DBS. But,... how do you buy the US Corporate Bonds ?

Let's continue our discussion here: https://forum.lowyat.net/index.php?showtopi...#entry105780117

For Eurodollar deposits like USD FDs in non-Fed regulated entities, counterparty risk is of paramount importance because the deposits are not insured. So you entirely dependent and count on the bank to refund you the money at the end of the deposit tenure.

Obviously you are unlikely to deposit USD FDs at Credit Suisse at the moment unless they offer you higher-than-market USD FD rates to factor in counterparty risk.

So far DBS is financially sound enough for us to deposit USD without the need for insurance. But uhm, prudent monitoring is still needed.

This post has been edited by TOS: Nov 7 2022, 09:16 PM

Reminder : Tomorrow would be the last day to apply for BS22122Z T-bill.

After trying out NC for the last issue, i am bidding for comp for the first time. I am bidding for 4.25% yield, a bit on the low side to ensure higher chance of getting it.

Why didn't you wait until today's MAS Bill auction results out and check their bids first?