Dear readers, I believe the application for Singapore March 2023 Savings Bonds will open soon.
The 10-year average annual yield of the Singapore February 2023 Savings Bonds was 2.97%, which I think is disappointing to many lovers and supporters of the Singapore Savings Bonds as this was really quite a distance off the 3.26% of the January 2023 Savings Bonds. If we are to put the decline in numerical terms, this represents a 8.9% decline.
And also, this 2.97% of the February 2023 Savings Bonds is a humble one given the much higher interest rates offered by other fixed deposits. However, one must always take note that the 2.97% interest is for a 10-year period as versus the relatively shorter term of the other fixed deposits, if we are to compare apples to apples.
Let us take a look at the average 10-year interest of the recent Singapore Savings Bonds as below.
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 Dec 22 to Feb 23 Singapore Savings Bond; the 3-month interest is at 3.23% (i.e. average of 3.47% (Dec 22), 3.26% (Jan 23) and 2.97% (Feb 22)).
From the graph, we can see how the monthly average 10-year interest (blue line) has started to go below the 3-month average (orange line) in Jan 23 and I believe the trend will persist. Hence, I am of the view that the March 2023 Savings Bonds will go below the 2.97%
Judging from the average percentage decline of about 7.5% from preceding month average 10-year interest rates for Jan 23 and Feb 23 Singapore Savings Bonds, I projected the floor (minimum) of average 10-year interest of Singapore March 2023 Savings Bonds as 7.5% off that of the February tranche and that works out to be 2.75% for the average 10-year interest of Singapore March 2023 Savings Bonds.
Hence I predicted the average 10-year interest of Singapore March 2023 Savings Bonds to be between 2.75% to 2.97% or 2.87%, taking the average.
We will soon find out whether my prediction of the 2.87% average 10-year interest of Singapore March 2023 Savings Bonds is correct!
That’s it for my insights today. I Thank you once again for your support of SG STOCKS INVESTING, your Money and Lifestyle magazine! I also run another blog Singapore Stocks Investing with similar useful insights! 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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