Dear readers, what will be the average annual 10-year interest of the Sep 23 Singapore Savings Bonds? I believe September 23 Singapore Savings Bonds is of interest to many individuals yet again, even since the average annual 10-year return of August 2023 Singapore Savings Bonds (SSB) reached a high of 2.99%. Hence this question on the average annual 10-year interest of September 2023 Singapore Savings Bonds will be asked by many.
Let us first take a look at the average annual 10-year return of the Singapore Savings Bonds this year including up to the previous Aug 23 SSB tranche:
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
From the above data, we can note that from Jun 23 on, the average 10-year interest rates of Singapore Savings Bonds has trended up.
With the interest rates of many Singapore fixed deposits trending down, will we expect the average annual 10-year interest of the Sep 23 Singapore Savings Bonds, start to go down?
While the above may be one way to analyse the trend of Singapore Savings Bonds (by pegging the trend to Singapore Fixed Deposits), I have found that the trend of Singapore Savings Bonds follow more closely with the Singapore 6-month Treasury Bills (T-Bills). Take a look at the interest rate of the three most recent 6-month T-bills.
BS23111W: 3.84% per annnum
BS23112N: 3.89% per annum
BS23113V: 3.99% per annum
We can note that, as with the Singapore Savings Bonds, the interest rates of the 6-month T-Bills has also been trending up.
To me, there is no reason why the average 10-year interest rate of Sep 23 Singapore Savings Bonds cannot go beyond 3% per annum as I don’t think interest rates are declining that aggressively. I would give an estimate of 3% to 3.10% per annum for Sep 23 Singapore Savings Bonds. However, since my thought is that the interest rates trend of Singapore Savings Bonds parallels that of the 6-month Treasury Bills, let us take note of the cut-off yield of the latest 6-month T-Bill, BS23114A, this coming auction date on 20 July 2023.
1 Aug 23 Update: Average 10-year return of Sep 23 Singapore Savings Bond released!
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