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Singapore Savings Bonds Nov 2017 – Up to 3.19%pa

MAS has announced information for the Singapore Savings Bonds Nov 2017 to be issued on 1 Dec 2017. Details are summarised below.

  • Bond ID: GX17120W
  • Tranche size: S$150 million
  • Issue date: 1 Dec 2017
  • Maturity date: 1 Dec 2027
  • Interest payment dates: 1 Dec, 1 Jun

Application Timeline

Investors can start applying for the SSBs through POSB/DBS, OCBC, UOB ATMs and internet banking platforms from 1 Nov 2017. To learn more about bond application, do head to my post All about Singapore Savings Bonds. Readers are strongly encouraged read this before application!

  • Deadline for application: 27 Nov 2017 9pm
  • Allotment results: 28 Nov 2017 after 3pm

Coupons Table

The coupons for Singapore Savings Bonds Nov 2017 have generally increased over last month’s issue. The table below summarises coupon yields in %pa of the various SSB issues for the last 6 months.

Issue Date Maturity Date Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Dec-17 Dec-27 1.26 1.52 1.68 1.82 2.02 2.26 2.50 2.73 2.97 3.19
Nov-17 Nov-27 1.21 1.36 1.55 1.75 1.96 2.18 2.41 2.64 2.87 3.10
Oct-17 Oct-27 1.19 1.34 1.55 1.78 2.01 2.25 2.50 2.76 3.02 3.28
Sep-17 Sep-27 1.15 1.32 1.52 1.73 1.97 2.23 2.52 2.80 3.08 3.35
Aug-17 Aug-27 1.05 1.40 1.59 1.75 1.95 2.20 2.42 2.64 2.87 3.11
Jul-17 Jul-27 1.04 1.39 1.64 1.87 2.09 2.30 2.50 2.70 2.92 3.18

The average returns have therefore also increased over last month’s issue. Investors can get the best average returns for any holding period with this Nov issue than the other 5 preceding issues. The 10-year average return is 2.16%. The table below provides a summary of the average yearly returns in %pa of the various SSB issues since Jul 2017.

Issue Date Maturity Date Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Dec-17 Dec-27 1.26 1.39 1.48 1.57 1.65 1.75 1.85 1.95 2.06 2.16
Nov-17 Nov-27 1.21 1.28 1.37 1.46 1.56 1.66 1.76 1.86 1.96 2.07
Oct-17 Oct-27 1.19 1.26 1.36 1.46 1.57 1.68 1.79 1.90 2.01 2.13
Sep-17 Sep-27 1.15 1.23 1.33 1.43 1.53 1.64 1.76 1.88 2.00 2.12
Aug-17 Aug-27 1.05 1.22 1.34 1.44 1.54 1.65 1.75 1.85 1.96 2.06
Jul-17 Jul-27 1.04 1.21 1.35 1.48 1.60 1.71 1.82 1.92 2.02 2.12

Do head here for a historical table of all the coupons since the starting issue of the SSBs.

Commentary

Risk-free Rates in Nov 2017

Yields have risen in Oct 2017. In Singapore, 3-month and 1-year SIBOR were 1.125% and 1.377% respectively on 3 Nov 2017 (compared to 1.124% and 1.377% on 31 Aug 2017. source: Association of Banks in Singapore).

Corporate Bonds Interest Rates in Nov 2017

The safest two Singapore dollar-denominated corporate bonds listed on SGX are CapitaMall Trust and Frasers Centrepoint. They provide 1.82% and 2.1% yield respectively for 3.28 years and 4.53 years to maturity as of 3 Nov 2017. In contrast, Singapore Savings Bonds Nov 2017 offers average 4-year and 5-year returns of 1.57% and 1.65% respectively.

Name Price (S$) Yield (% pa) Coupon (% pa) Maturity Date Time to Maturity (Years)
CapitaMall Trust 1.0400 1.82 3.08 20-Feb-21 3.28
Frasers Centrepoint 1.0420 2.10 3.65 22-May-22 4.53

Fixed Deposit Rates in Nov 2017

  • UOB: up to 1.15%pa for 10-month deposit (1 Nov to 30 Nov 2017)
  • Maybank: up to 1.30%pa for 12-month deposit, up to 1.55% pa for 24-month deposit (from 1 Nov 2017)
  • Standard Chartered: up to 1.2%pa for 7-month deposit (1 Nov to 30 Nov 2017)
  • CIMB: up to 1.3% for 6-month deposit, up to 1.4% for 12-month deposit

 

Read more:
Analysis of previous month’s SSB (May 2017)
All about Singapore Savings Bonds
Singapore Bonds Interest Rates




Singapore Savings Bonds May 2017 – Up to 3.19%pa

MAS has announced information for the Singapore Savings Bonds May 2017 to be issued on 1 Jun 2017. Details are summarised below.

  • Bond ID: GX17060T
  • Tranche size: S$150 million
  • Issue date: 1 Jun 2017
  • Maturity date: 1 Jun 2027
  • Interest payment dates: 1 Jun, 1 Dec

Application Timeline

Investors can start applying for the SSBs through POSB/DBS, OCBC, UOB ATMs and internet banking platforms from 2 May 2017. To learn more about bond application, do head to my post All about Singapore Savings Bonds. Readers are strongly encouraged read this before application!

  • Deadline for application: 26 May 2017 9pm
  • Allotment results: 29 May 2017 after 3pm

Coupons Table

The coupons for Singapore Savings Bonds May 2017 have generally decreased over last month’s issue (figures in bold). The table below summarises coupon yields in %pa of the various SSB issues for the last 6 months.

Issue Date Maturity Date Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
1-Jun-17 1-Jun-27 1.02 1.44 1.71 1.95 2.17 2.37 2.54 2.72 2.93 3.19
May-17 May-27 1.00 1.51 1.72 1.87 2.12 2.48 2.78 3.10 3.42 3.73
Apr-17 Apr-27 1.02 1.44 1.69 1.89 2.15 2.45 2.72 3.00 3.29 3.59
Mar-17 Mar-27 1.04 1.41 1.83 2.26 2.56 2.70 2.83 2.98 3.19 3.50
Feb-17 Feb-27 1.05 1.52 1.93 2.32 2.60 2.76 2.90 3.05 3.25 3.57
Jan-17 Jan-27 0.91 1.12 1.54 1.99 2.30 2.46 2.64 2.84 3.08 3.40

 

The average returns have also generally decreased over last month’s issue. Yields are similar over the first 5 years compared to previous bond issue but has significantly reduced coupons for the last 5 years. The best bond since the start of the year is still the Feb 2017’s issue, with 2.44% 10-year average return. The table below provides a summary of the average yearly returns in %pa of the various SSB issues since Jan 2017.

Issue Date Maturity Date Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
1-Jun-17 1-Jun-27 1.02 1.23 1.39 1.52 1.65 1.76 1.87 1.97 2.06 2.16
May-17 May-27 1.00 1.25 1.41 1.52 1.64 1.77 1.91 2.04 2.18 2.32
Apr-17 Apr-27 1.02 1.23 1.38 1.50 1.63 1.76 1.89 2.02 2.14 2.27
Mar-17 Mar-27 1.04 1.22 1.42 1.63 1.81 1.95 2.06 2.17 2.27 2.38
Feb-17 Feb-27 1.05 1.28 1.50 1.70 1.87 2.01 2.13 2.23 2.33 2.44
Jan-17 Jan-27 0.91 1.01 1.19 1.38 1.56 1.70 1.83 1.95 2.06 2.18

 

Do head here for a historical table of all the coupons since the starting issue of the SSBs.

Commentary

Risk-free Rates in Apr 2017

Yields have fallen in Apr 2017 even as US Fed increased benchmark interest rates. There is increasing street expectation that the Fed will be more dovish about raising interest rates this year. In Mar, the Fed had already suggested 2 instead of 4 rate hikes for the rest of the year. The market thinks this may be further reduced with new global market risks such as North Korea, unfolding Brexit and French presidential elections. The 3-month SIBOR was 0.99875  on 28 Apr 2017 (compared to 0.99958% on 4 Apr 2017. source: Association of Banks in Singapore). MAS reiterated that they will maintain the S$NEER policy band at 0% during the semi-annual monetary policy briefing on 12 Apr 2017.

Corporate Bonds Interest Rates in Apr 2017

The safest two Singapore dollar-denominated corporate bonds listed on SGX are CapitaMall Trust and Frasers Centrepoint. They provide 2.28% and 3.32% yield respectively for 3.79 years and 5.04 years to maturity as of 5 May 2017. In contrast, Singapore Savings Bonds May 2017 offers average 4-year and 5-year returns of 1.52% and 1.65% respectively.

Name Price (S$) Yield (% pa) Coupon (% pa) Maturity Date Time to Maturity (Years)
CapitaMall Trust 1.0290 2.28 3.08 20-Feb-21 3.79
Frasers Centrepoint 1.0150 3.32 3.65 22-May-22 5.04

Fixed Deposit Rates in Apr 2017

  • UOB: up to 1.1%pa for 13-month deposit (2 May to 31 May 2017)
  • Maybank: up to 1.10%pa for 12-month deposit, up to 1.55% pa for 24-month deposit (from 10 Apr 2017)
  • CIMB: up to 1.3%pa for 12-month deposit (until 31 May 2017)
  • Hong Leong: up to 1.2% for 12-month deposit, up to 1.3% for 24-month deposit

 

Read more:
Analysis of previous month’s SSB (April 2017)
All about Singapore Savings Bonds
Singapore Bonds Interest Rates




Singapore Savings Bonds Apr 2017 – Up to 3.73%pa

MAS has announced information for the Singapore Savings Bonds Apr 2017 to be issued on 1 May 2017. Details are summarised below.

  • Bond ID: GX17050F
  • Tranche size: S$150 million
  • Issue date: 1 May 2017
  • Maturity date: 1 May 2027
  • Interest payment dates: 1 May, 1 Nov

Application Timeline

Investors can start applying for the SSBs through POSB/DBS, OCBC, UOB ATMs and internet banking platforms from 3 Apr 2017. More information on bond application can be found in my post on All about Singapore Savings Bonds. Readers are strongly encouraged to learn more about the bonds before application.

  • Deadline for application: 25 Apr 2017 9pm
  • Allotment results: 26 Apr 2017 after 3pm

Coupons Table

The coupons for Singapore Savings Bonds Apr 2017 have generally increased over last month’s issue. The table below summarises coupon yields in %pa of the various SSB issues since start of the year.

Issue Date Maturity Date Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
May-17 May-27 1.00 1.51 1.72 1.87 2.12 2.48 2.78 3.10 3.42 3.73
Apr-17 Apr-27 1.02 1.44 1.69 1.89 2.15 2.45 2.72 3.00 3.29 3.59
Mar-17 Mar-27 1.04 1.41 1.83 2.26 2.56 2.70 2.83 2.98 3.19 3.50
Feb-17 Feb-27 1.05 1.52 1.93 2.32 2.60 2.76 2.90 3.05 3.25 3.57
Jan-17 Jan-27 0.91 1.12 1.54 1.99 2.30 2.46 2.64 2.84 3.08 3.40

 

The average returns have also generally improved over last month’s issue. However, the best bond since the start of the year is Feb 2017’s issue, with 2.44% 10-year average return. The table below provides a summary of the average yearly returns in %pa of the various SSB issues since Jan 2017.

Issue Date Maturity Date Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
May-17 May-27 1.00 1.25 1.41 1.52 1.64 1.77 1.91 2.04 2.18 2.32
Apr-17 Apr-27 1.02 1.23 1.38 1.50 1.63 1.76 1.89 2.02 2.14 2.27
Mar-17 Mar-27 1.04 1.22 1.42 1.63 1.81 1.95 2.06 2.17 2.27 2.38
Feb-17 Feb-27 1.05 1.28 1.50 1.70 1.87 2.01 2.13 2.23 2.33 2.44
Jan-17 Jan-27 0.91 1.01 1.19 1.38 1.56 1.70 1.83 1.95 2.06 2.18

Head here for a historical table of all the coupons since the starting issue of the SSBs.

Commentary

Risk-free Rates in Mar 2017

Yields have hardly changed in Mar 2017 even though US Fed increased benchmark interest rates. Expectations of faster raises to interest rates have been well priced into the market. The 3-month SIBOR was 0.99958%  on 4 Apr 2017 (source: Association of Banks in Singapore). MAS last announced in Oct 2016 that they will maintain the S$NEER policy band at 0%. Given recent news of strengthening economy in Singapore, there might be a chance MAS may readjust their policy. MAS is scheduled to release their semi-annual monetary policy on 14 Apr 2017.

Despite an uneventful month for interest rates, coupons have increased over last month’s issue. Bond handover of the SGS 5Y and 10Y benchmarks had accounted for the increase in yield. Therefore, this bond issue provides optimised rates for the current interest rate environment. Check out Singapore Savings Bonds Coupons for more explanation on this handover yield optimisation effect.

Corporate Bonds Interest Rates in Mar 2017

The safest two Singapore dollar-denominated corporate bonds listed on SGX are CapitaMall Trust and Frasers Centrepoint. They provide 2.27% and 3.16% yield respectively for 3.86 years and 5,11 years to maturity as of 2 Apr 2017. In contrast, Singapore Savings Bonds Apr 2017 offers average 4-year and 5-year returns of 1.52% and 1.64% respectively.

Name Price (S$) Yield (% pa) Coupon (% pa) Maturity Date Time to Maturity (Years)
CapitaMall Trust 1.0300 2.27 3.08 20-Feb-21 3.86
Frasers Centrepoint 1.0230 3.16 3.65 22-May-22 5.11

Fixed Deposit Rates in Mar 2017

  • UOB: up to 1.2%pa for 13-month deposit
  • CIMB: up to 1.3%pa for 12-month deposit
  • Hong Leong: up to 1.2% for 12-month deposit, up to 1.3% for 24-month deposit

 

Read more:
All about Singapore Savings Bonds
Singapore Bonds Interest Rates