Bonds Singapore Market

Singapore Savings Bond (SSB) Nov 2023 – Applied $10K, Redeemed $20K, Estimated Dec SSB Yield

Calvin Lo

November 2023 Singapore Savings Bond (SSB) is offering 3.32% average yield over 10 years. Applications close tomorrow 26 October 9pm. This month’s SSB yield is the 2nd highest in recent times, only surpassed by the 3.47% yield of December 2022 SSB.

Estimated yield for next month’s December 2023 SSB

10-year SGS bond yields have been rangebound between 3.3-3.5% so far this month. With only 5 more working days to go, next month’s SSB offering should yield very close to 3.4%, higher than current offering.

What I’m doing

Due to attractive yield, I’m applying for $10k worth of SSB this month. However, I’m not rushing in since next month’s yield will likely be higher. If indeed inflation and yields will stay higher for longer, I don’t think there’s much urgency.

Concurrently, I’m redeeming $20k worth of past SSB issuances. I’ll be redeeming $9k of May 2023 issuance and $11k of April 2023 issuance.

Refer to my SSB tracker for more details.

Final thoughts

IMO, I think interest rates will continue to drift upwards modestly so I expect SSB yields could stay above 3.3% for a few months. Interest rates have been on the rise since 2020 and have no signs of reversing course yet.

On the whole, government bonds like SSB and T-bills will continue to feature in my portfolio, but I will also be liquidating some to take advantage of lower equity and bond prices.A

Are you applying for SSB this month?

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