Dear readers, let us turn our attention on what will be the average annual 10-year interest of the Oct 23 Singapore Savings Bonds?
Again, my belief is that the Singapore Savings Bonds, which offers savers a risk-free way to grow their monies is well-loved in general by Singaporeans for two factors:
a) the higher costs of living many of us are experiencing right now, and
b) the average 10-year interest rates of the Singapore Savings Bonds have become more attractive, as detailed below.
Jan-23 3.26% per annum
Feb-23 2.97% per annum
Mar-23 2.90% per annum
Apr-23 3.15% per annum
May-23 3.07% per annum
Jun-23 2.81% per annum
Jul-23: 2.82% per annum
Aug-23: 2.99% per annum
Sep-23: 3.06% per annum
To be frank, the average 10-year interest rates fluctuate a little before an uptick from Jul 2023 on. If this trend is to continue, I believe savers are anticipating the average 10-year interest rate for October 2023 Singapore Savings Bonds to be higher than 3.06% per annum.
One thing noteworthy is that the recent cut-off yield of 6-month T-bills, which can be taken as a reference for just what the average 10-year interest rate of the recent Singapore Savings Bonds can be has been declining as below.
BS23113V, auction date: 6 Jul 23; cut-off yield of 3.99% per annum
BS23114A, auction date: 20 Jul 23; cut-off yield of 3.85% per annum
BS23115E, auction date: 3 Aug Jul 23; cut-off yield of 3.75% per annum
BS23116F, auction date: 17 Aug Jul 23; cut-off yield of 3.73% per annum
But having said the above, I believe savers into Singapore Savings Bonds need not be too concerned as I believe the cut-off yield of 6-month treasury bills will decline and the average 10-year interest rate of Singapore Savings Bonds will continue to go up until an equilibrium point is reached.
Hence, I am projecting an average 10-year interest rate for the October 2023 Singapore Savings bonds (SBOct23) to be 3.10% per annum, which is a small increment from that of the September 2023 Singapore Savings Bonds.
4 Sep 23 update: Average 10-year Interest rate of Oct 2023 Singapore Savings Bonds are out!
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