Singapore Savings Bonds SSB Jul 2018 offers coupon yields of 1.72% pa to 3.41% pa from Year 1 until Year 10. Investors can enjoy an average return of 2.63% pa when the bond is held to maturity in 2028. Details are summarised below.
- Bond ID: GX18070N
- Tranche size: S$250 million
- Issue date: 2 Jul 2018
- Maturity date: 1 Jul 2028
- Interest payment dates: 1 Jul, 1 Jan every year
SSB Jul 2018 Application Timeline
You can start applying for this month’s SSB through POSB/DBS, OCBC, UOB ATMs and internet banking platforms from 1 Jun 2018.
- Deadline for application: 26 Jun 2018 9pm
- Allotment results: 27 Jun 2018 after 3pm
Singaporeans, PRs and foreigners can apply for the Singapore Savings Bonds. You will need to be above 18 years old and possess a Central Depository (CDP) Account. Head to MAS Singapore Savings Bonds website to learn more.
Latest News Regarding Singapore Savings Bonds
Singapore Savings Bonds are Getting More Popular
Interest rates in Singapore are rising quickly in tandem with US rates. This makes bonds more attractive to investors. As a low-risk, sovereign-backed bond, Singapore Savings Bonds are definitely getting more and more popular with retail investors. The chart below illustrates the increasing popularity of SSBs.
The most recent SSB Jun 2018 still saw over-subscription that is becoming normal. Applications amounted to S$520 million compared to offer size of S$200 million; it was oversubscribed by another 2.6x (SSB May 2018 was also over-subscribed by 2.6x)! This was despite MAS increasing the issuance size to S$200 million. This is the 4rd time in 5 months that an issue of the Singapore Savings Bonds was oversubscribed. Click to read MAS announcement of SSB Jun 2018 allotment results.
MAS Increases Offer Size Again to S$250 million
To meet the rising demand for Singapore Savings Bonds, MAS first increased the issue size to S$200 million in April 2018, up from S$150 million. You can read more about this in the MAS announcement here. From the recent few issues, it was clear that demand still outstripped supply. This time, MAS has decided to increase the issue size further to S$250 million for Singapore Savings Bonds Jul 2018.
MAS Removed S$50,000 Issue Limit for Singapore Savings Bonds
MAS has removed the issue limit of S$50,000 for each SSB issue since SSB Apr 2018. However, the overall individual limit of S$100,000 still applies. This means that investors can apply for up to S$100,000 in any SSB issue subject to the individual limit. There is also no change in the allotment mechanism where smaller applications are filled first when the SSB issue is oversubscribed. More details of this new policy change can be found in MAS SSB official circular and Business Times coverage of this issue limit change for Singapore Savings Bond.
Key Benefits of Singapore Savings Bonds
Singapore Savings Bonds are Safe
Singapore Savings Bonds, introduced in Oct 2015 by MAS to encourage Singaporeans to save, is a low-risk, sovereign-backed bond asset. The Government of Singapore, who issues and backs the bonds, holds the highest AAA credit rating from major credit rating agencies.
The credit ratings can be examined at MAS’s site about Govt of Singapore’s Credit Rating and TradingEconomics’s page on consolidated credit ratings for Singapore.
Singapore Savings Bonds Are Not Traded
SSBs are not traded so there is no capital depreciation nor appreciation. Therefore, bond investors do not need to worry about rising interest rates affecting the value of their SSBs. The Government of Singapore will purchase any redeemed bonds at par value together with the accrued interest.
Singapore Savings Bonds are Liquid
Singapore Savings Bonds are redeemable in any given month without commission charges.
Singapore Savings Bonds Help to Diversify Investment Portfolio
Bonds are essential in any complete investment portfolio to insulate it from extreme return volatility.