Dear readers, I believe the application for April 2023 Singapore Savings Bonds will open soon.
What will be the 10-year average yield of the April 2023 Singapore Savings Bonds?
The 10-year average annual yield of the March 2023 Singapore Savings Bonds was 2.9%, which I think is quite expected to many savers and supporters of the Singapore Savings Bonds, given that interest rates of the Singapore Savings Bonds has come down.
As a recap, the 10-year average yield of the February 2023 Singapore Savings Bond is 2.97% and hence the 10-year average yield of the March 2023 Singapore Savings Bonds is 2.36% lower than that of the February 2023 Singapore Savings Bonds.
Let us take a look at the average 10-year interest of the recent Singapore Savings Bonds as below.
March 2023 Singapore Savings Bonds: 2.90%
February 2023 Singapore Savings Bonds: 2.97%
January 2023 Singapore Savings Bonds: 3.26%
December 2022 Singapore Savings Bonds: 3.47%
November 2022 Singapore Savings Bonds: 3.21%
October 2022 Singapore Savings Bonds: 2.75%
September 2022 Singapore Savings Bonds: 2.80%
August 2022 Singapore Savings Bonds: 2.88%
July 2022 Singapore Savings Bonds: 2.71%
Numbers alone, as above may not be as interesting. Hence, I have plotted the above data of the average 10-year interest together with the moving 3-month average (of the average 10-year interest of each month bond) on the graph below. What is the 3-month average? Well, take for example, the Jan 23 to Mar 23 Singapore Savings Bond; the 3-month interest is at 3.04% (i.e. average of 33.26% (Jan 23), 2.97% (Feb 23) and 2.90% (Mar 23)).
From the graph, we can see how the monthly average 10-year interest (blue line) continues to go below the 3-month average (orange line) and this downtrend started in Jan 23.
I believe the trend will persist and hence of the view that the April 2023 Singapore Savings Bonds will go below the 2.90% in terms of the 10-year average yield.
Judging from the average percentage decline of about 5.63% from preceding month average 10-year interest rates for Feb 23 and Mar 23 Singapore Savings Bonds, I projected the floor (minimum) of average 10-year interest of Singapore April 2023 Savings Bonds as 5.63% off that of the March tranche and that works out to be 2.74% for the average 10-year interest of Singapore April 2023 Savings Bonds.
Hence I predicted the average 10-year interest of Singapore April 2023 Savings Bonds to be between 2.74% to 2.90% or 2.82% per annum.
That’s it for my insights today. I Thank you once again for your support of SG STOCKS INVESTING, your Money and Lifestyle magazine! Connect with me here to follow the daily exciting and useful posts on these two blogs, Thank You for your support!
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