You can apply through ATM or Internet Banking via the three banks (UOB,OCBC, DBS) But if you don’t have $10,000 to spare, would prefer more flexibility, and are happy with getting more than the paltry 0.05% which the banks give you… then SSBs are still your best bet. Here are the details for this month’s Singapore Savings Bonds: The interest rate for this month’s bonds is: This means that if you invest $1,000 in this issue of Singapore Savings Bonds and held it for the full 10 years. The only other countries that enjoy the same “AAA” credit rating are countries such as Switzerland and Hong Kong. 1.744 %. linearGradient: perShapeGradient, 2020 is also set to be a relatively heavy maturity year. Singapore Savings Bond May 2020 offers 0.96% to 1.91% interest over 10 years. Do note that if there is an event of over-subscription, meaning more demand than the amount available, you might find yourself only investing a portion of the amount you applied for. The March 2020 bonds’ annualized return is lower than the January 2020 and February 2020 Savings Bonds by around 0.1% for the first three years and about 0.05% for the 10-years holding. }, { Issuance of 6-month Singapore Government Treasury Bills from July 2019. stops: [ OUTLOOK. Local Currency Short Term Issuer Default Rating. Bond and Bills. *At the end of each year, on a compounded basis. You don’t need to starve or eat grass in order to invest in SSBs. The selloff in the longer-term bonds is likely fuelled by two factors: rising developed-market (DM) bond yields and the duration-heavy SGS 2020 issuance calendar, wrote Eugene Leow, DBS rates strategist. RATINGS KEY. [0, 'green'], Current 5-Years Credit Default Swap quotation is 25.56 and implied probability of default is 0.43%. Fixed Deposits. The amount you invest in the SSB is completely backed by the Singapore Government. Wondering what is the best SSB strategy to adopt? However, the Individual Limit for SSB is currently set at $200,000 (this includes bonds bought with cash and your SRS monies). Bond Investment: The complete guide for beginners. The government describes them as “specially structured government securities… designed to be accessible and suitable for individual investors.” , to see preditions of bond yield. * Data have been retrieved since 11 September 2016. The longer you hold on to the bond, the higher the interest rate you enjoy. linearGradient: perShapeGradient, x1: 0, If we look at the most recent Fixed Deposit Promotion with a 1-year tenor, your best bet would be a little more than 1.0% per annum. Let’s say you wish to invest $10,000 in SSBs. The Singapore 10Y Government Bond has a 1.555% yield. Note that the headline interest rate stated is the compounded annualised return over a 10 years. credit rating); outlook stable: 14/07/2020: Cbonds has prepared the league table for investment banks – the arrangers of Singapore bonds for 1H 2020: 26/08/2019: Fitch Ratings affirms Singapore at "AAA" (LT Int. If you’re deciding between SSBs and fixed deposits. ] It seems like leaving your money in a fixed deposit account is a better investment regardless of whether your investment horizon is 1 year or 10 years. The Singapore 10Y Government Bond has a 1.536% yield. If you wish to invest more, you can do so in multiples of $500. [0, 'red'], In order to view bonds only offered to Accredited Investors and other relevant persons in reliance on a relevant exemption from needing to register a prospectus for such bonds, you must: Have the intent and financial capability to transact not less than S$200,000 (or its equivalent in a foreign currency); or Central Bank Rate is 0.26% (last modification in March 2021). Will we see more defaults in the SGD space in 2020? 14-Aug-2020. The effective interest rate for April 2020 Singapore Savings Bonds (GX20040X) is 1.63% if you held it for 10 years. Home Page - World Government Bonds. It is also one of the easier ways for risk-averse investors to combat Singapore’s average inflation rate from 1962 – 2021 which stands at 2.5 per cent. linearGradient: perShapeGradient, }; The sub-fund is denominated in Singapore Dollars. Price refers to a hypothetical zero coupon bond, with a face value 100. There will be some S$14.6 billion of corporate bonds maturing this year, excluding perpetual securities facing their first call dates and callable bonds, which make up 13.5 per cent of the total outstanding SGD corporate bonds. The Singapore 10 Years Government Bond reached a maximum yield of 2.684% (17 May 2018) and a minimum yield of 0.678% (20 May 2020)*. You can expect your first interest 6 months after the bonds are issued. But you’ll probably incur penalties and might lose any earned interest altogether. Having such a strong rating arguably makes the SSB one of the safest products in the market. [0, 'white'], Singapore Savings Bond July 2020 issue. Singapore Savings Bonds are issued by the Singapore Government, to provide Singaporeans with a safe and flexible option for long-term saving. The average return per year if you are to hold the Aug 2020 Singapore Savings Bonds are: SG Stocks Investing readers, let us do something to help many who need assistance, find out here Year 1: 0.27% This reduces the risks of investing in the SSB to the bare minimum (read: there’re still risks tho). List of available Government Bonds. Back to Enjoy returns that increase over time and redeem in any month without penalty. WATCH. Take note that KrisEnergy is a zero coupon bond. 2019 Singapore Corporate Bond Market Review iii 2. Credit Outlook for 2020 – Riding a technical wave into a new decade viii 3. The information contained herein does not constitute the provision of investment advice. The results will be announced after the “last day to apply date”. Click on the Forecast link (More banks may be included in future) An individual (not joint) CDP Securities account with Direct Crediting Service activated. linearGradient: perShapeGradient, The minimum amount you can purchase for Singapore Savings Bonds is S$500. y2: 1 This way you can get answers and everybody learns too! ] Zoom 1m 3m … You’ll receive $1,000 and any accrued interest by the end of the 2nd business day of June. 30 Mar 21. stops: [ //Gradiente rosso per positivi [5] ] Table of Singapore Government Bonds (prices unverified) It was not just the government bonds. Before applying, make sure you have the following: You can apply for a Singapore Savings Bond through two methods: Note: If you are using OCBC, the OCBC mobile app works too! There is also no penalty for individuals who wish to exit their investment early. Select a Savings Bond, enter your desired investment amount and hit SUBMIT! You can read more about this bond issuance in the public circular issued by MAS for Singapore Savings Bond GX20040X. var colors = Highcharts.getOptions().colors; Alternatively, you could also look at high-interest savings accounts. 10 Years vs 2 Years bond spread is 113.5 bp. ]; The Singapore 10Y Government Bond has a 1.536% yield. So even if you’re a millionaire, you can’t just dump all your money into SSBs either. xiii 5. [1, '#f6e1bb'] Fixed Deposits. The effective interest rate per year will be 1.61% and you’ll earn a total interest of $165 (via the official SSB calculator). And if we compared it with the average return per year for this month’s SSB…. The first and only corporate bond ETF, Nikko AM Investment Grade Corporate Bond ETF, was listed on SGX in August 2018. [1, 'white'] Take note that a minimum investment of $500 is required. Are you wondering if investing in SSBs is better than Temasek bonds? Buying one lot of Hyflux would cost you $942 (1,000 * $0.942). Ultimate guides to kickstart your finances. To check the interest you’ll receive every year, you’ll need to click ‘View Bond Details’. },{ Scale (local curr.) It is also one of the easier ways for risk-averse investors to combat Singapore’s average inflation rate from 1962 – 2021 which stands at 2.5 per cent. 1. Singapore Government Bonds - Yields Curve. 17/08/2020: Fitch Ratings affirms Singapore at "AAA" (LT Int. We know that you’ve got limited funds to work with and you want to maximise your investment potential. Now another interesting quirk about the Singapore Savings Bonds, is that unlike an SGS or a US Treasury, even if interest rate drops, you cannot sell the bond back to the government at a profit. Click on Spread value for the historical serie. Central Bank Rate is 0.26% (last modification in March 2021). Head to our Singapore Savings Bond SSB Apr 2020 article for coverage of this bond. However, you should note that most fixed deposit plans require a huge sum of money — usually more than $10,000 just to qualify for the best rates — to be parked with the banks till maturity. } SINGAPORE Government Securities (SGS) bonds with tenors above 10 years have been under profit-taking pressure in the past few weeks, according to DBS Group Research on Wednesday. Apart from investments in bonds, the Fund may also invest in money market instruments (denominated in SGD or foreign currencies), bond funds (including funds managed by the Managers) and time deposits in any currency. stops: [ // TE azzurro [3] You can apply through ATM or Internet Banking via the three banks (UOB,OCBC, DBS) However, if you only hold the SSB bonds for 1 year, with 2 semi-annual payments, your interest rate is 1.54%/yr. linearGradient: perShapeGradient, This growth was supported by outstanding LCY government and corporate bonds which expanded 5.3% q … Remember to have your CDP account number on hand when applying. [1, 'white'] [1, 'red'] Before we jump into investing in the SSB, let’s take a closer look at the risks and benefits. IMPORTANT: From 1 Oct 2020, sales charges for new CPF-IS purchases will be removed. You will need the following to start applying for the Singapore Savings Bonds: A bank account and ATM card with one of the participating banks – currently DBS/POSB, OCBC or UOB. ] The successful allocated Savings Bonds will be issued on the first business day of the following month. F1+. Singapore’s local currency (LCY) bond market grew 3.9% quarter-on-quarter (q-o-q) and 11.6% year-on-year to SGD502.9 billion (USD380.4 billion) in the fourth quarter of 2020. The overall yield is the current market yield. A bank account with any local banks in Singapore (DBS/POSB, OCBC or UOB). The minimum amount you can purchase for … You can contribute your thoughts like Ming Feng. The Singapore Savings Bonds (SSB) is one of the more common options for Singaporeans to invest their money in as it usually offers a higher return as compared to bank fixed deposits. The current issue of Singapore Savings Bond is SSB Mar 2020 GX20040X. Which makes it suitable for almost everybody. stops: [ //TE Orange [2] UOB raises US$1.5 billion in first dual-tranche sustainability bond offering. Safe and flexible bonds for individual investors. ] Step-By-Step Guide to Investing in Your First SSB, Singapore Savings Bond vs. y1: 0, 01 Jul 2020: 5500: NY05100N: SG7928920854: 3.250%: 01/09: 01/03: 01 Sep 2020: 8000 [1, 'green'] 20 May 20. Once you submit your redemption request, you will get your principal back (along with any accrued interest) by the 2nd business day of the following month. Singapore retail bond market is rather small with only 10 bonds trading at SGX. What Are The Benefits of Parking My Savings With SSB? That means it does not pay annual interest to bondholders, but … The 10-yr and 1-yr Singapore Savings Bonds Rate since the first issue in Oct 2015. Or even consider other financial instruments like insurance savings plans. Local Currency Long Term Issuer Default Rating. 10Y Bond Yield Spread - Singapore vs Main Countries. x2: 0, },{ Whatever your political views might be, it IS a fact that the Singapore Government received a “AAA” credit rating. Gone are the tranches of Singapore Savings Bonds where the annualized returns for the 10-years holdings is 2.1% (though I have subscribed to these). This website is for information purposes. The rest of the amount will be returned back to your bank account. This is the lowest interest rate that was offered by Singapore Savings Bonds since inception. This quick comparison should help you with your decision: And if you’d like to find out more about SSBs, then this guide will be your best friend: The interest rate for SSB changes every month with each issue…. The Singapore Savings Bonds will be issued on the 1 st business day of the month (1 April 2021 for the April issue). Assuming you choose to redeem $1,000 anytime during May…. This is evident again in the current global health crisis; Singapore’s local currency government and non-government bonds generated resilient returns while most other asset classes in Fig 1 struggled. My Savings Bonds. A positive spread (marked by a red circle) means that the 10Y Bond Yield is higher than the corresponding foreign bond. So if you hate the feeling of having your money locked up for extended periods of time, the SSB is one of the many solutions available. It should tell you how much … Last Update: 9 May 2021 20:15 GMT+0. x 4. Side note: we’ve noticed that the recent SSB rates are slowly inching up these past few months. Here’s how you go about applying for the Singapore Savings Bonds. colors = [{ // Gradiente Verde [0] [0, 'white'], Traded endowments have flexible investment tenures with maturity as short as 12 months. ] Once you have applied for your SSB, all you have to do is sit back and relax. All these will be reflected in your statement, and interests are automatically credited to your bank account. They trade at a minimum lot size of a thousand. [0, 'white'], And there will be a $2 transaction fee involved for each application. The November 2020 ’s SSB bonds yield an interest rate of 0.87%/yr for the next 10 years. Introduced in 2015, Singapore Savings Bonds are a type of Singapore Government Securities that offer ease of opening, lower minimum deposits, and greater flexibility. On its factsheet, it states that its weighted average yield to maturity is at 2.29%. Apr 8, 2021, 9:12 am. Scale (foreign curr.) We’ve established in other articles that SSBs are a better investment as compared to fixed deposits given their: HOWEVER, with the recent drop in average return per year for SSBs, this claim is highly contestable if we compared Singapore Savings Bond vs. Click on the "If you redeem early" tab, choose the month and year of redemption and hit SUBMIT. May 2020 | 3.5 min read. Historically Singapore bonds have delivered relatively stable returns even during periods of market volatility. The types of securities that this sub-fund may invest in include, but are not limited to fixed income instruments (deemed or rated investment grade), bank deposits, money market securities, currency forwards and futures. Normal Convexity in Long-Term vs Short-Term Maturities. Singapore Savings Bond is a safe way to save your money that you have no idea when you will need to use it, or your emergency fund. Stay updated with the latest finance tips! I mean… you could probably withdraw your money from the fixed deposit anytime. var perShapeGradient = { Fret not, ask our community here! The Singapore credit rating is AAA, according to Standard & Poor's agency. }, { // Gradiente Verde per negativi [1] If you have $10,000 and a long investment horizon, then you might want to consider fixed deposits as another viable option. Thinking of redeeming your Savings Bond before it matures? The Singapore Savings Bonds (SSB) is one of the more common options for Singaporeans to invest their money in as it usually offers a higher return as compared to bank fixed deposits. Where are we in the Singapore corporate credit cycle? [1, 'white'] Traded endowment plans vs. Singapore Savings Bonds: Traded endowments are low-risk and issued by large, trusted Singapore companies governed by the Monetary Authority of Singapore. [0, '#b8cae1'], $10,000 will grow to $11,772 in 10 years. The highlighted column refers to the zero coupon bond. The sub-fund may also invest in high quality unsecured or unrated bonds. Move your cursor over the charts to find out when each interest payment will occur. 14-Aug-2020. Published Date: 12 November 2018. stops: [ When you buy a bond, you are lending money to the company that is issuing the bond. Click on the "Residual Maturity" link to get historical serie. The February 2020 ’s SSB bonds yield an interest rate of 1.75%/yr for the next 10 years. Affirmed. You can find out important dates like the “last day to apply date”. A bond is a debt instrument. The effective interest rate for February 2020 Singapore Savings Bonds (GX20020V) is 1.75% if you held it for 10 years. stops: [ //Gradiente rosso [4] Normal Convexity in Long-Term vs Short-Term Maturities. Should I still be in bonds when equity is rallying? The 10-yr and 1-yr Singapore Savings Bonds Rate since the first issue in Oct 2015 The July 2020 ’s SSB bonds yield an interest rate of 0.80%/yr for the next 10 years. }, { The coupon rate ranges between 3% and 6%, which you can the coupon rate after their name. Still have more questions after reading the article? investing in SSBs is better than Temasek bonds? Why not try asking the friendly community members on Seedly? This is a slight decrease as compared to 1.76% for January 2020 issue of the Singapore Savings Bonds. It mainly comprises bonds that are issued by government-linked companies, statutory boards, Singapore companies and foreign companies. It offers interest rates from 1.46% to 1.91%. We will notified via mail of the amount of Singapore Savings Bonds allotted to us or we can verify it online through the CDP Internet service, or calling CDP at 65357511. 10 Years vs 2 Years bond spread is 115.1 bp. xv 6. linearGradient: perShapeGradient, Singapore Savings Bonds. Clicking on the "Full Country Comparison" link, you can perform a full check of available data and see the differences between the countries. Price Simulation: bonds with a face value of 100, with different coupon rates.
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