The SSB May 2024 issue was undersubscribed with a lukewarm response from yield hunters despite sporting a yield of more than 3%.
Only $301 million (0.3x) worth of applications were received out of the total $900 million available.
Table of ContentsSSB Trend As Of May 2024
The Singapore Savings Bonds SSB historical interest rate has been very attractive for the past year until the dip in yield happened for February and March.
The yield swiftly rebounded in May 2024 (3.06%) and I am expecting June 2024 (about 3.3%) to continue the uptrend.
Entire month of April 2024 hovering above 3.11%
The yield for the next issue of SSB (June 2024) is expected to command an attractive range of around 3.2% to 3.3%.
For every issue of the Singapore Savings Bonds, the returns shall always be equal to the ten-year reference SGS yield if it is held to maturity.
The SSB yield is determined without guesswork and official documentation detailing the calculations is available, or use a free tool to do so.
You can compare the charts (SSB avg. 10-year yield vs. 10-year reference yield) for the last ten years below and see how the general trends have mirrored each other.
Singapore Government 10-Year Bond Yield From 2016 to 2024Singapore Savings Bonds Issues From 2016 to 2024
The reason why SSB returns have inched upward is that the Fed has embarked on interest rate hikes in an attempt to combat inflation, with the past SSB interest rates climbing from the lows of January 2022 (1.78%) to the highs of December 2022 (3.47%).
Allotment Result For SSB May 2024 (SBMAY24 GX24050X)
The current May 2024 SSB issue was undersubscribed.
Total offered = $900.0 millionTotal applied = $301.0 millionTotal allotted = $289.6 millionQuantity ceiling = $200,000
The maximum
