Dear readers, the result of the application for September 2022 Singapore Savings Bonds has been released. Of the $1.9 billion received in application, $900 million were allotted and that means a allotment percentage of 47.4% (or 2.11 times subscribed). Successful applicants each received either $13,000 or $13,500 in allotment. The ten-year average yield of the September 2022 Singapore Savings Bonds is 2.8% per annum.
We compare the above statistics with the August 2022 Singapore Savings Bonds, which is one of the best or best Singapore Savings Bonds with a 10-year average annualised return of 3%.
For the August 2022 Singapore Savings Bonds, $700 million was allotted from an application of $2.4 billion and that means an allotment percentage of 29.2% (or 3.42 times subscribed). Successful applicants each received $9,000 or $9,500 in allotment.
As such, we can see by the reduction of 0.2% per year in annualized interest for 10 years (total 2%), subscription for Singapore Savings Bonds was reduced from 3.42 subscribed to 2.11 subscribed; that is demand among retail investors drop. With lower demand, allotment per successful retail investor has now become higher.
From what I have read, some analysts expect the October 2022 Singapore Savings Bonds to further drop in terms of average annualised 10-year interest rate but I believe the overall 10-year annualized interest will still be superior compared to the fixed deposits in the market.
I think the annual interest rate should be 2.6% to 2.7% per annum interest rate for the 10-years Singapore Savings Bond.