SSB June 2024 Result – Singapore Savings Bonds Oversubscribed – Beragampengetahuan

The SSB June 2024 issue was oversubscribed with a roaring response from yield hunters, having sported a yield of more than 3%.

$1.6 billion (1.6x) worth of applications were received out of the total $1 billion available.

The quantity ceiling is $24,000 (or $24,500) depending on how much you have applied for.

If you did not get the full allocation, the July 2024 issue is expected to be an attractive option as well, so watch out for it.

SSB Trend As Of June 2024

The Singapore Savings Bonds SSB historical interest rate has been very attractive for the past year until the dip in yield happened in February and March.

The yield swiftly rebounded in May 2024 (3.06%) and June 2024 (3.33%) continued the uptrend.

Every single day in May 2024 has ranged between 3.2% and 3.46% for the Singapore 10-year government bond, so we are looking sweet for July 2024.

The yield for the next issue of SSB (July 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. Official documentation detailing the calculations is available, or you can always 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.

SSB returns have inched upward because the Fed has embarked on interest rate hikes in an attempt to combat inflation.

Past SSB interest rates climbed from the lows of January 2022 (1.78%) to the highs of December 2023 (3.40%).

Allotment Result For SSB June 2024 (SBJUN24 GX24060A)

The current June 2024 SSB issue was oversubscribed.

• Total offered = $1.0 billion
• Total applied = $1.6 billion
• Total allotted = $1.6 billion
• Quantity ceiling = $24,000

Applicants who applied for S$24,000 or lower were fully allotted, subject to the individual allotment limits.

Applicants who applied for S$24,500 or higher were allotted either S$24,000 or S$24,500.

The maximum amount of Singapore Savings Bonds that each investor may hold at any one time is $200,000.

The Market Expects Rates To Stay Higher For Longer

At the moment, interest rates are expected to remain at current levels at least until December 2024 (previously September 2024) before starting to decline.

If you are an investor in REITs like me (my preferred choice is the Syfe REIT+), the pain will continue to affect prices in the short term.

REITs will continue to announce distributions that are under pressure from heightened borrowing costs.

Businesses will continue to be hurt by higher costs of funds, whereas home-buyers will have to grapple with higher home loan rates.

The long-awaited pivot has been kicked down the road once again, and the market is starting to consider the possibility of another rate hike despite slowing but sticky inflation.

Based on the CME FedWatch Tool, the decline in interest rates is expected to be slower than originally expected.

You probably have your own thoughts as to whether you’re going to be keeping funds on the sidelines for now or to keep dollar cost averaging into the market.

If rates somehow defy all expectations and continue to go up, we can always redeem our older Singapore Savings Bonds and buy newer ones.

How To Check The Historical SSB Allotment Results

To get an overview of the allotment results for past issues of the Singapore Savings Bonds, click here.

You may also log in to the MAS Singapore Savings Bonds portal to check your existing SSBs investment and results.

FAQ #1 – When will the monthly SSB results be announced?

MAS will always announce the overall application results on the third last business day of the month.

FAQ #2 – When will unsuccessful applications be refunded?

Money will be refunded by the second last business day of the month.

FAQ #3 – When are the interest payment dates?

The interest payment months for Singapore Savings Bonds is every subsequent six months after the issue date.

For the latest May 2024 Singapore Savings Bonds, the interest payment months will look like the following.

If you need the official Monetary Authority of Singapore’s SSB calculator, you can visit the Singapore Savings Bonds portal by MAS.

Currently, alternative short-term instruments offer stiff competition with high yields (4%), whereas risk appetite has seemingly returned for some investors.

Fun fact → At the start of 2022, a total of about 120,000 individuals held more than $5.7 billion worth of SSB.

Learn more → Learn 37 Things To Become An Expert On Singapore Savings Bonds

Well Positioned With SSBs Or Seek Better Yield?

As always, I am constantly on the lookout for what future SSB issues will bring, despite the fact that I am already well-positioned with my emergency funds earning a guaranteed, risk-free rate of more than 3% with Singapore Savings Bonds for the next ten years.

While the importance of the 10-year duration cannot be overstated, I understand the burning desire for higher yields for our dry powder.

If need be, I can redeem the issues of SSBs that I hold – but that is very unlikely to happen.

Data clearly illustrates that SSBs yielding more than 3% have seen very little redemptions.

Meanwhile, if you are still standing on the sidelines with idle cash earning next to 0% interest, it would be a waste not to deploy it in low-risk or no-risk options for attractive returns while waiting.

Where I Am Getting Good Yield For Idle Funds Now?

In addition to Singapore Savings Bonds, I have idle funds parked in the Fullerton SGD Cash Fund and Mari Invest, which yield an effortless 3.5% to 4.0%.

You can read about the comparison that I have written on them.

They easily beat digital bank options such as GXS Bank (2.68%), Trust Bank (1.5% to 2.5%), and MariBank (2.88%) in terms of returns and offer equivalent or close to instant liquidity.

Digital advisors such as Endowus ($20 off fees) and low-cost brokerages (e.g. Webull and Tiger Brokers) offer easy access to the Fullerton SGD Cash Fund.

Kevin started beragampengetahuan when his net worth languished at negative $25,755. His desire to turn things around led him to build passive income from investments and side hustles that pay for his daily expenses and vacations. You can learn more about Kevin here.