Please read the disclaimer at the bottom of my blog if you wish to continue with the contents below. The first tranche of the Singapore Saving Bond is biddable now and its average 10 years yield is 2.63%. We have to weigh the pros and cons before we rush to bid for this almost risk free bond backed by the Singapore Government. First, one must know that the gradual annual yield step up mechanism effects compounding negatively. Why? Because you are getting the bulk of the yield after the 5th year. Secondly, you need a one month notice before you can sell out at par which means although liquidity is always available, it is slow liquidity. Lets compare it with the original SGS bond that is currently trading on the exchange: As of today the 10 year SGS bond listed on SGX is trading at 96.12 which gives ......