Feb 2019 Singapore Savings Bond

Other Issues of SSBs Compared to Feb 2019  Issue

The Feb issue for Singapore Savings Bonds was quite disappointing as both the interest rates for  short and long term were lower and did not match up to the previous month issue. The interest rate for the first 3 years remains constant and there is no premium in holding the bond for a longer period. Without any doubt, there is no need for me to replace my existing bond and no action is needed this month. For those who are interested in subscribing, I guess this will also be temporary and you will be replacing them once there are issues with better interest rates.

Average interest per annual for 1-year and 10-year period

We continue to observe a flattening yield curve with the gap between the 1-year and 10-year interest rates getting smaller and smaller. It was suggested that the Fed will probably only do 1-2 interest rate hikes this year, slowing the pace of increasing interest rate. Since interest rates for SSBs are tracking SGS which in turn are highly dependent on US interest rates, we should not be expecting any significant increase in the short term interest rate for SSBs this year.

Feb 2019  Issue
Details on this month SSB can be found on SGS website.


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