Quick Take: SSB maximum allotment rises to S$59,500 as demand falls

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Bonds

By Gerald Wong, CFA β€’ 26 Jun 2024 β€’ 0 min read

The maximum allotment for the July issuance of the SSB rose to S$59,500 as applications fell.

ssb singapore savings bond allotment june 2024.jpg
In this article

What happened?

The latest Singapore Savings Bonds (SSB) allotment results were out today. 

The maximum allotment for the July issuance of the SSB (SBJUL24 GX24070S) was at S$59,500. 

If you applied for S$59,000 or lower, you would be fully allotted the SSB, subject to the individual allotment limits.

If you applied for S$59,500 or higher, you would be allotted either S$59,000 or S$59,500.

Approximately 10.52% of applicants who applied for S$59,500 or higher were selected at random and allotted the additional S$500.

Let us dive deeper to learn more about the latest SSB allotment. 

Singapore Savings Bonds (SSB) allotment results 26 June 2024
Source: MAS

What we learnt from the latest SSB allotment 

#1 – Demand fell compared to the previous issuance

Total applications for the SSB fell to S$1.3 billion from S$1.6 billion in the previous issuance. 

Despite the fall, demand for the SSBs was at the second highest level so far this year. 

Applications for SSBs fell 26 June 2024

The lower demand for the SSB is likely driven by the slightly lower 10-year average return of 3.30% offered by the latest SSB. 

SSB 10-year average return 26 june 2024
Source: MAS

#2  - Maximum allotment rose 

With total applications exceeding the S$1.1 billion of SSBs to be issued, the maximum allotment of the SSB was S$59,500.

This represents an increase from the maximum allotment of S$24,500 in the previous issuance. 

Maximum allotment for SSB 26 June 2024

What would Beansprout do? 

The higher allotment of the latest SSB should be good news for SSB investors. 

If you are not able to get your targeted allotment of the SSB, you can build a bond ladder to smooth out the interest earned on the SSB over time.

If you are looking to earn a higher interest rate in the short term compared to the SSB, then it might be worth considering the 6-month Singapore T-bill, which has a cut-off yield of 3.74% in the latest auction.

To find out how the yield on the SSB compare with other assets such as FD and T-bill, check out our Compare Yield Tool

Earlier, we shared that the projected return of the next SSB is likely to fall as the 10-year government bond yield has declined in June.

However, some members in the Beansprout community noted the bounce in the 10-year government bond yield on 26 June.

Despite the bounce, our latest projected 10-year average return for the next SSB is at 3.22%, below the return of the current issuance. 

You can continue to monitor the latest SSB interest rate projections here

Applications for the next SSB will open on 1 July 2024. 

You can receive an email reminder if you are afraid of missing out on the application deadline for the next SSB.

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Learn more about SSBs and how to apply for SSBs using our comprehensive SSB guide

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