What happened?

It seems that many investors are focused on T-bills, savings and fixed deposit accounts, such that the Singapore Savings Bond (SSB) has been less talked about these days.  Hence, it is not a surprise that demand for SSBs fell sharply for the January issuance (SBJAN23 GX23010Z). Applicants who applied for S$172,500 or lower were fully allotted, subject to individual allotment limits.  Applicants who applied for S$173,000 or higher were allotted either S$172,500 or S$173,000.  About 95.93% of these applicants were selected at random and allotted S$173,000.<img src="https://growbeansprout.com/strapi-uploads/image_1079db05e0.png" alt="Graphical user interface, text, application Description automatically generated"> Source: MAS

What we learnt from the SSB allotment results

#1 – Investor interest in SSB fell sharply

There was S$910 million of applications for the January issuance of the SSB (SBJAN23 GX23010Z). This was way lower than the S$1.7 billion of applications for the December issuance of the SSB (SBDEC22 GX22120S)....