Header image

Unexpected SBJAN23 GX23010Z Auction Results

Posted on by careyourpresent

This is the auction result

Singapore Saving Bonds SBJAN23 GX23010Z results was released at 3pm today. Let’s look at the result released at 3pm today.

This Savings Bond was allotted using the Quantity Ceiling format. Applicants who applied for S$172,500 or lower were fully allotted, subject to the individual allotment limits.
Applicants who applied for S$173,000 or higher were allotted either S$172,500 or S$173,000.
Approximately 95.93% of these applicants were selected at random and allotted the additional S$500.

It’s been a long while since we see this kind of result. 909.7 million applied out of the 900 million offered by MAS. Everyone will get $173000! This is highly in contrast if we compared to the last month application demand of $1.7 billion worth of application. I actually expected the demand to drop but didn’t expect so much.

This simply mean demand = supply. SSB is always oversubscribed with not enough to goes around to all applicants even with the rate rise this year.

What does this mean for the market? What does this mean for the saver?

https://www.mas.gov.sg/bonds-and-bills/auctions-and-issuance-calendar/issuance-singapore-savings-bond?issue_code=GX23010Z&issue_date=2023-01-03

Let’s do a comparison

The fairest comparison with SIngapore Saving Bonds would be the recent Treasury Bill. The auction result was with the cut-off yield is 4.28%. Total amount allocated is 4.4 billions out of the 11.8 billion applied. This mean 37.2% are allocated. Out of these 37.2%, 1.6 billion are given to the non-competitive applications (see this post for more details).

For treasury bill, it is still oversubscribed. However, the current SSB is demand = supply? What does this mean? I can think of 3 possible reasons. Let’s see.

Possible reason 1:

The market is no longer interested in the 2.95% rate given by MAS. Investor demands for higher rates. They could get much better rate from other more liquid solution such as Fixed Deposit, Money Market Funds etc that I have mentioned in my past post Best places to put Liquid Cash now. Hence, not many people want to apply for SSB now.

https://www.mas.gov.sg/bonds-and-bills/singapore-savings-bonds

Possible reason 2:

An increase in interest rates can lead to a decrease in liquidity in the market. When interest rates rise, the cost of borrowing money increases, which can lead to a decrease in demand for loans. This can lead to a decrease in the supply of credit, which can in turn lead to a decrease in the overall liquidity of the market.

Does this mean that there is not enough cash liquidity left in the current market. However, if you see the treasury bill, it is still oversubscribed. What do you think?

A “liquidity crunch” is a situation in which there is a lack of funds available for financial institutions or investors to meet their financial obligations or to carry out transactions. This can occur when there is a sudden increase in the demand for cash or a decrease in the supply of cash.

If there is a liquidity crunch, it means market will have issue should there be a crash next year.

Possible reason 3:

It is a freak, unusual or unexpected outcome of an auction result; it just happened that people thought no one will apply and no point to apply so much since SSB always oversubscribed for the past few issues. Hence, people just subscribed less since they thought they won’t be able to get everything anyway. This is similar the last second issue of Treasury bill where the result was 4.4% yield. Hence, is this just a freak result?

How did I fare?

As mentioned in my last post Singapore Savings Bonds SBJAN23 GX23010Z: A Safe and Secure Investment, I have redeemed my old issues and reapplied new issues. Hence, effectively I have managed to refresh my liquidity funds for higher rates 🙂

Which case would it be?

Your guess is as good as mine. No one would know currently but we may find out soon enough. If you notice the recent market, 10 years treasury yield is increasing again. Recession risk also increasing.

For me, I am keeping some cash to wait. It will be sad if you have no cash to buy when asset price become cheap. Patience is a virtue. It is a good quality to have if you want generational wealth.

https://www.cnbc.com/quotes/US10Y

Good articles that you should read!

People are drawn to dividend investing.

Why? Firstly, dividends provide a regular stream of income, allowing investors to receive a portion of the company’s profits on a periodic basis. This can be particularly attractive for individuals seeking consistent cash flow or looking to supplement their existing income. Additionally, dividend investing is often viewed as a more stable and predictable investment strategy compared to relying solely on capital appreciation.

I always write and share articles, especially on dividends which many people love them. Do read them!

Alternatively, you can go the right side of my page, there is a search bar where you can simply search “dividend” to see all my articles related to dividends!

Of course, you can search for other things that would interest you such as “Careyourpresent”, “Reits”, “Side Hustles”, “Fixed Incomes”, “Savings” etc.

CAREYOURPRESENT

Money just buy you the chance of freedom.

When you are young and working, you exchange time for money. When you are old, you can have lots of money but you can’t buy time back, especially the things that you have missed while busying striking out in career. Of course, if you love your career, and consciously know that you are missing out the first time your child walk or talk, that’s ok, but if you are the other spectrum, please do something about it.

Your kids grew up and they no longer need you to accompany them. They no longer want to sit on your lap to share/do things with you…all these time you spent in your 9 to 6 or even longer cubicles…can the money that you have earned by you back these?

We always thought we have more time with our old parents, but we are wrong. Time with them is ticking away every day. One day it will suddenly be gone. There is no regret medicine, no reset in time. Gone is gone and cannot come back. No matter you are billionaires or millionaires, you cannot reset this.

We always thought that we have more time with our spouse every day, but we are wrong. One day they will be gone too. When you read this, please go tell your spouse that you love him/her and he or she is the best thing that you ever had in your life.

I have picked out some of the more life reflecting articles of the CAREYOURPRESENT series. Do read them:

You can read more about my articles on Careyourpresent via the Category “Careyourpresent” or simply click “Careyourpresent” via the main menu bar.

REMEMBER:

Love your life daily.

You have one less day with your spouse, parents, children and yourself.

Time is ticking away.

For each passing day,

Enjoy and Treasure your Life!

For those who are interested in regular updates of my articles, please join the others to sign up for my free newsletter to has my newest blogposts sent to your mailbox for free!

For real time exclusive updates on market news/life (especially Crypto markets where the news move fast, important news will be shared directly via tweets or telegrams), do also join the platforms below and engage with other like-minded people!

You may also contact me via [email protected].

If you’re looking referral codes, do check out my referral and ebook page. Give it a try and who knows? You might end up loving these platforms! To be absolutely fair to all the readers, I am definitely using all these companies and they are useful to me! Likely will be useful to you too!

At the same referral and ebook page, you can also download my free ebooks and other free resources.

For quick references to these resources, you can see below.

  • Ebooks and other useful resources on enhancing productivity (Investment, Excel, Notion etc). Currently most of it are free at this moment (subject to change).
  • WeBull: A powerful brokerage with nice free welcome gift. You can refer to my guide here on how to signup! 4 Simple step only! Click here to register a new account!
  • MoneyOwl: You can use this 6SHU-93MC to get free grab vouchers and highly safe liquid cash fund account.
  • Trust Bank – You will enjoy free FairPrice E-Voucher referral if you sign up via my referral code KNDBPEPT. Simply download the Trust Bank SG App on the App Store or Google Play Store. Tap on “Use referral code” immediately after you start the app and key in: KNDBPEPT
  • FSMOne: P0413007. Good account to keep liquid cash in autosweep and to purchase investment at low fee.
  • Hostinger: You can use this link for hosting your new website. 20% off hosting!
  • Crypto.com: Use my referral link https://crypto.com/app/h92xdfarkq to sign up for Crypto.com and we both get $25 USD 🙂
Category: Investment and Finance

Leave a Reply

Your email address will not be published. Required fields are marked *

%d bloggers like this: