Bonds Singapore Market

Singapore Savings Bond (SSB) Nov 2022 – 3.21% Yield!

Calvin Lo

Nov 2022 SSB has hit another high so far this year of 3.21% average 10-year yield! The SSB yield curve has continued to flatten, with first year yield at 3.08%.

Source: MAS

If you’re looking for places to park your cash or SRS funds, SSB could be a good option.

For more details, refer to my Singapore Savings Bond (SSB) tracker page here.

Bonds yields still rising

It’s just the first week of October, but SGS 10Y bond yields appear to be on the uptrend again. SGS bonds yields more or less follow the US Treasury yields.

So as long as the US Fed continues on its aggressive rate hiking path, I would expect SGS bonds yields to continue rising in tandem.

Source: World Government Bonds
Source: Ycharts

SSB offers the flexibility to redeem early without penalty. You’d also still be entitled to accrued interest upon redemption. So if interest rates continue to rise, you have the option of redeeming earlier bonds and applying for the latest issuance with higher interest rates.

Will demand for SSB be high?

On one hand, the 3.21% yields is the highest so far this year but yields can reasonably be expected to continue rising higher. Personally, I think demand will higher than last month but some might still wait for next month’s issuance instead.

There’s also the upcoming T-bills auction for both 6m and 12m. The cut-off yields for the last 6m T-bill was a pretty high 3.32%, higher than SSB. So, I’d expect many to want to try for next T-bill auction as well.

How much I’m applying

Personally, I still like SSB as the best option to park my emergency funds or idle funds. Last month, I got $10k SSB at 2.75%. These were actually my parents funds which I’m helping to deploy since I’ve not maxed out my $200k SSB limit.

This month, I have another $10k of parents cash to deploy into SSB. I’m also thinking of rolling another $10k of my July SSB since those are lower yielding at only 2.71% (first year only 1.69%).

I’m not redeeming my July SSB just yet, but I’ll borrow $10k from my investment cash pile (now at around 18% of the Family Portfolio), kinda like a bridging loan. So I’ll only redeem $10k (or whatever I’m allocated for Nov SSB) next month, and I’ll only get the cash early Dec. Fortunately, I have this luxury since I’m in quite a bit of cash sitting on the sidelines as this bear market continues to bite.

Hopefully demand will be split with T-bills and some might be holding out for higher yields so I can get fully allocated $20k.

If you happen to know how to estimate how much SSB we can be expect to be allocated, please share.

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Disclaimer: This is not financial advice. I am not professional financial advisor nor do I work in the finance industry. Anything I write here is purely my personal opinion. Please do your own research and due diligence before investing into anything. All investments come with associated risks. Best to consult a financial advisor if you’re still unsure.

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One thought on “Singapore Savings Bond (SSB) Nov 2022 – 3.21% Yield!”

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