Banks

Banks: Jun SSB take-up weak; still Negative banks
-Interest for the Singapore Savings Bond (SSB) appear scant, as seen in the 7.3% fall in the take-up rate for the Jun issuance.
-MKE opines SSBs are unlikely to result in major outflows from FD. 2015-16 SSB issuance is a tiny fraction of domestic banking unit deposits
-Meanwhile, weak SSB demand comes amid attractive FD rates, and declining SGS yields.
-However, MKE is still overall Negative on S’pore banks due to derating catalysts.
-The house prefers UOB (Hold, TP $16.96) for exposure, and has Sell calls on both DBS (TP $13.40) and OCBC (TP $7.20).