Singapore Savings Bonds' latest issue offers record low interest rates
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Tay Peck Gek
THE June issue of Singapore Savings Bonds (SSB) has hit the lowest rates since its launch in 2015.
The latest issue of the SSB, which opened on Monday afternoon, offers an interest rate of 0.57 per cent for the first year and an average rate of 1.05 per cent per annum over the 10-year holding period.
The rock-bottom rates come amid a declining interest-rate environment. iFast fixed income analyst Ang Chung Yuh said that SSB rates are based on Singapore Government Securities (SGS) yields, and the Singapore government bonds have continued to hit new record lows in the past couple of months.
He told The Business Times that the 10-year Singapore government bond yields have fallen from 1.73 per cent at the end of 2019 to 1.27 per cent as of end-March, and then 0.89 per cent at the end of April. "The fall in SSB interest rates is a natural consequence of global central banks easing monetary policy."
The latest SSB issue closes at 9pm on May 26.
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