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.
That’s it for my insights today. I Thank you once again for your support of SG STOCKS INVESTING, your Money and Lifestyle magazine! Connect with me here to follow the daily exciting and useful posts on these two blogs, Thank You for your support!
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