In comparison, the previous issuance for June saw a total of S$302.9 million in applications, versus S$500 million on offer
[SINGAPORE] The latest Singapore Savings Bond (SSB) allotted on Thursday (Jun 26) saw applications fall short of the S$400 million offered, with the 10-year average return dropping from the previous tranche.
The July tranche of the Singapore government-backed bonds received a total of S$353.7 million in applications for the amount on offer.
A total of S$319.7 million was applied within individual allotment limits, and this amount was fully allotted.
In comparison, the previous issuance for June saw a total of S$302.9 million in applications, falling short of the S$500 million on offer.
The latest tranche offered a first-year interest rate of 2.06 per cent, a decline from the 2.2 per cent offered during the June issuance.
The 10-year average return for the latest tranche was 2.49 per cent, a drop from the preceding tranche’s return of 2.56 per cent.
SSBs take their interest rates from the average yields of Singapore government bonds from the month before.
Earlier on Jun 18, the US Federal Reserve announced its decision to keep interest rates steady, in the range of 4.25 and 4.5 per cent, with policymakers signalling that borrowing costs are still likely to fall this year.
Applications for this tranche closed on Jun 25, with the bonds set to be issued on Jul 1.
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