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SSB August 2023 Consequence – Singapore Financial savings Bonds Underneath-Subscribed 0.5x | Turtle Investor Acquire US

After a somewhat muted response from traders and being undersubscribed for the previous few points, Singapore Financial savings Bonds continued the development of being unfancied by yield hunters within the newest SSB August 2023 with S$298.6 million (0.5x) being utilized for out of the full S$600 million.

Regardless of providing a yield of shut to three%, market traders stay unconvinced to place in more cash into Singapore Financial savings Bonds.

SSB Development As Of August 2023

The Singapore Financial savings Bonds SSB historic rate of interest has been holding regular for the previous 12 months round 2.77% to three.47% for the common 10-year returns.

SSB August 2023 1 | Turtle Investor

If there may be one factor it’s worthwhile to find out about SSBs, it’s that for every problem of Singapore Financial savings Bonds, whether it is held to maturity, the returns shall all the time equal the ten-year reference SGS yield.

There is no such thing as a guesswork concerned in how the SSB yield is decided and there may be official documentation detailing the calculations.

You may evaluate the 2 charts beneath and see how they mirror one another.

SSB August 2023 2 | Turtle Investor
SSB August 2023 3 | Turtle Investor

The explanation why SSB returns have inched upward is that the FED launched into rate of interest hikes in an try to fight inflation, with the previous SSB rates of interest going from the lows of January 2022 (1.78%) to the highs of December 2022 (3.47%).

Market Expects Curiosity Charges To Maintain Regular

The nice or unhealthy information, relying on the way you see it, is that rates of interest will preserve at present ranges by way of 2023 till the top of subsequent yr.

In case you are an investor of REITs like I’m (through Syfe REIT+), the ache will proceed to mirror within the costs within the short-term and plenty of REITs will proceed to announce distributions which might be beneath strain from heightened borrowing prices.

Regardless of final month’s charge hike in July 2023, Federal Reserve Bank Governor Michelle Bowman has mentioned that extra charge hikes will doubtless be wanted.

Nevertheless, her views are sometimes seen as extra hawkish (a stance that favours extra aggressive will increase in rates of interest so as to fight inflation) than her colleagues.

If one other charge hike does occur, it should push the band additional upwards to 550-575 however the market doesn’t suppose that it’s going to occur.

CME FedWatch Tool - 09 August 2023

Based mostly on the CME FedWatch Tool, the market is presently anticipating rates of interest to stay at round 5.25% to five.50% on the finish of the yr.

Correspondingly, the market seems to be pushed by GREED in the intervening time primarily based on the CNN Fear & Greed Index.

SSB August 2023 4 | Turtle Investor

You most likely have your individual ideas as as to whether you’re gonna be protecting funds on the sidelines for now or to maintain greenback price averaging into the market.

I suppose if charges occur to go up, we are able to all the time redeem our older Singapore Financial savings Bonds and purchase newer ones, proper?

Allotment Consequence For SSB August 2023 (SBAUG23 GX23080N)

This August 2023 SSB tranche turned out to be undersubscribed once more with a complete utilized S$298.6 million and a complete allotted S$294.2 million out of S$600 million provided.

The amount ceiling for this tranche is $200,000.

SSB August 2023

All candidates who utilized have been absolutely allotted, topic to the person allotment limits.

In case you didn’t know, the utmost quantity of Financial savings Bonds that every investor could maintain at anyone time is $200,000.

How To Examine Historic SSB Allotment Outcomes

To get an outline of the allotment outcomes for previous tranches of the Singapore Financial savings Bonds, click here.

You may additionally log in to the MAS Singapore Savings Bonds portal to examine your current SSBs funding and outcomes.

SSB August 2023 5 | Turtle Investor

FAQ (1) When will the month-to-month SSB outcomes be introduced?

MAS will all the time announce the general utility outcomes on the third final enterprise day of the month.

FAQ (2) When will unsuccessful purposes be refunded?

Cash shall be refunded by the second final enterprise day of the month.

FAQ (3) When are the curiosity cost dates?

The curiosity cost months for Singapore Financial savings Bonds is each subsequent six months after the problem date.

For August 2023 Singapore Financial savings Bonds, the curiosity cost months shall be

  • Subject date + 6 months (01 February 2024)
  • Subject date + 12 months (01 August 2024)
  • Subject date + 18 months (01 February 2025)
  • Subject date + 24 months (01 August 2025)
  • And so forth

Should you want the official Financial Authority of Singapore’s SSB calculator, head over to the Singapore Savings Bonds portal by MAS.

Monetary Authority of Singapore (MAS) Singapore Savings Bonds (SSBs) Calculator

As of proper now, different short-term devices are providing stiff competitors with excessive yields, whereas threat urge for food has seemingly returned for some traders.

Enjoyable reality → In complete, about 120,000 people maintain greater than S$5.7 billion price of SSB in the beginning of 2022.

Be taught extra → Learn These 37 Issues to grow to be an knowledgeable on Singapore Financial savings Bonds.

Nicely Positioned With SSBs Or Search Higher Yield

As all the time, I’m continuously looking out for what future SSB tranches will convey, although I’m already well-positioned with my emergency funds incomes a assured, risk-free charge of greater than 3% with Singapore Financial savings Bonds for the subsequent ten years.

SSB August 2023 6 | Turtle Investor

Whereas the significance of the 10-year period can’t be overstated, I perceive the burning want for larger yields for our dry powder.

Positive, if want be, I can redeem my earlier tranches of SSBs – however that may be very unlikely to occur.

In the meantime, if you’re nonetheless standing on the sidelines with idle money getting subsequent to 0% curiosity, it might be against the law to not deploy them in low or no-risk choices for enticing returns whereas ready.

For the time being, I’ve idle funds parked in MoneyOwl (learn my MoneyOwl WiseSaver overview) and to be trustworthy, no-frills 4.01% (01 August 2023) is definitely fairly good and beats choices akin to GXS Financial institution (3.48%), Belief Financial institution (2.0%), Maribank (2.5%) and Singtel Sprint PET (1.6%).

SSB August 2023 7 | Turtle Investor

market expectations (see charts and tables above), I feel charges are going to remain excessive in the intervening time.

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SSB August 2023 8 | Turtle Investor

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SSB August 2023 9 | Turtle Investor

Hitting the Like and Share buttons (floating on the bottom-right nook) will assist my content material attain extra individuals who would profit.

If in case you have made it this far into this put up and located it useful or informative, contemplate subscribing to be effortlessly notified of latest content material and sources akin to free downloadables that I’m creating →

SSB August 2023 8 | Turtle Investor

As a thank-you gesture for studying and being a part of the Turtle Investor household, I have created these free downloadables for you so do examine them out! If in case you have discovered them helpful, please assist me out by giving them a 5-star score – I might actually admire it!

Join with me through Facebook | Twitter | Telegram | Discord | RSS Feed | Linktree

Did I point out I’ve a model new store? Mainly, an upgraded model of my devoted referral hyperlinks & codes web page and a few are unique provides. In my digital retailer, I penned down my ideas and listed some improbable services that I’m already paying for that helped to supercharge my monetary journey. Test it out – it may need one thing you need!

Howdy! I Am Kevin

On the age of 30, I’m the Private Finance Blogger who laid declare to a unfavourable web price of minus $25,755 – and determined to show issues round.

My blueprint for monetary independence can assist provide you with a head begin in your individual FIRE – Monetary Independence, Retire Early (elective) – journey. Extra tidbits about myself right here in the event you’re curious.

I’m married to a beautiful spouse and meaning twin earnings with no children. In my free time, I chase miles in order that we are able to fly in enterprise class. My hobbies embrace making espresso cash off this weblog and sharing every part I do know with you.

SSB August 2023 9 | Turtle Investor

Hitting the Like and Share buttons (floating on the bottom-right nook) will assist my content material attain extra individuals who would profit.

If in case you have made it this far into this put up and located it useful or informative, contemplate subscribing to be effortlessly notified of latest content material and sources akin to free downloadables that I’m creating →

SSB August 2023 8 | Turtle Investor

As a thank-you gesture for studying and being a part of the Turtle Investor household, I have created these free downloadables for you so do examine them out! If in case you have discovered them helpful, please assist me out by giving them a 5-star score – I might actually admire it!

Join with me through Facebook | Twitter | Telegram | Discord | RSS Feed | Linktree

Did I point out I’ve a model new store? Mainly, an upgraded model of my devoted referral hyperlinks & codes web page and a few are unique provides. In my digital retailer, I penned down my ideas and listed some improbable services that I’m already paying for that helped to supercharge my monetary journey. Test it out – it may need one thing you need!

Howdy! I Am Kevin

On the age of 30, I’m the Private Finance Blogger who laid declare to a unfavourable web price of minus $25,755 – and determined to show issues round.

My blueprint for monetary independence can assist provide you with a head begin in your individual FIRE – Monetary Independence, Retire Early (elective) – journey. Extra tidbits about myself right here in the event you’re curious.

I’m married to a beautiful spouse and meaning twin earnings with no children. In my free time, I chase miles in order that we are able to fly in enterprise class. My hobbies embrace making espresso cash off this weblog and sharing every part I do know with you.

SSB August 2023 9 | Turtle Investor


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