Singapore Savings Bond offers all-time high 1st year and 10-year average interest rates
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AGAINST a rising-interest-rate backdrop, the Singapore Savings Bond (SSB) is offering an all-time high first year and 10-year average return of 3.26 per cent and 3.47 per cent respectively for the December tranche, which opened on Tuesday (Nov 1).
Its interest rates are higher than last issuance’s first-year interest rate of 3.08 per cent and 10-year average rate of 3.21 per cent. Despite the allotment amount of S$900 million, that issuance was oversubscribed with applications totalling S$2.2 billion; those who applied for over S$10,000 were allotted either S$10,000 or S$10,500 on a random-selection basis.
SSBs, which are guaranteed by the government, have a different allotment size every month and have been oversubscribed since the July tranche. The tranche that opened on Tuesday has an allotment of S$1 billion, and closes on Nov 25.
