Apr 2019 Singapore Savings Bond and SIA Bond

Other Issues of SSBs Compared to Apr 2019  Issue

Although the March issue's interest rates were not as attractive as the month for Feb, it was still oversubscribed and only those who applied below $38,500 were fully allocated. The increase in demand was probably due to the increase in Individual Limit and the permit to use SRS funds to purchase Singapore Savings Bond.

This month rates are just marginally better than the previous month for the short term but it is not as good for the long term. I might be subscribing as I have additional cash from the payout from M1. These will not be held till maturity for 10 years and just as temporary savings.

Average interest per annual for 1-year and 10-year period

Apr 2019 Issue

Details on this month SSB can be found on SGS website.

As for the SIA bond, I think the demand will be very weak as the Hyflux episode is still deep in people's mind. Investor are treating it as though it is junk bond and the coupon rate are not high enough to compensate for the risk. The rate given is comparable to Temasek 2.70% 5-year T2023-S$ bond but the probability of SIA defaulting is so much higher than Temasek. I cannot find a good reason to apply so I will not be subscribing for the SIA bond.

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