SG Bonds are worth considering too and are available now

If you are looking for risk free investment, you can consider Singapore Government Bond. Ever since, my first purchase in Jan – see here, I visit the MAS website of the Singapore Government Securities regularly to check for new issues.

And guess what, 2 new issues are opened this week.

One issue is the One Year Treasury Bill – BY19101A.

  • Issue Date: 30 April 2019
  • Maturity Date: 30 April 2020
  • Minimum Denomination: $1000
  • Closing Date: 25 April 2019 Noon
  • Can apply at our local banks’ ATM
  • Coupon Rate depends on auction, for the last T-Bill that closed in Jan 2019, the average coupon rate was 1.97%. I think for this round, it may be a bit lower as interest rate has been trending slower in the last few months. To be conservative, you may want to assume 1.90%.

1.9% not good enough? But it is already better than the one year fixed deposit rate and is risk free backed by our AAA rated Singapore Government.

Another issue is the 10 Years Singapore Government Bond – NX18100A

  • Issue Date: 2 May 2019
  • Maturity Date: 01 May 2028
  • Minimum Denomination: $1000
  • Closing Date: 26 April 2019, Noon
  • Can apply at our local banks’ ATM
  • Coupon rate will depend as well. The average should be about 2.3%.

For me, I am interested in the 1 year T-Bill issue only. A 10 years bond seems too long.

If you are interested to buy too, you may want to note that although we can sell the bond on the SGX market, they are very illiquid. Therefore, you will only do it if you are desperate and willing to do a fire sale. You are unlikely to recover your capital in a fire sale. Hence, the one year T-bill is also more appealing from this perspective.

For those of you who have maxed out your SSB already, this is one good diversification investment product to consider.

Happy Easter folks and have a great weekend.

Regards,

Warriortan

 

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