Singapore Savings Bonds Jan 2018 – Up to 2.75%pa

MAS has announced information for the Singapore Savings Bonds Jan 2018 to be issued on 1 Feb 2018. Details are summarised below.

  • Bond ID: GX18020A
  • Tranche size: S$150 million
  • Issue date: 1 Feb 2018
  • Maturity date: 1 Feb 2028
  • Interest payment dates: 1 Feb, 1 Aug every year

Application Timeline

Investors can start applying for the SSBs through POSB/DBS, OCBC, UOB ATMs and internet banking platforms from 2 Jan 2018. To learn more about bond application, do head to my post Singapore Savings Bonds: Everything You Need to Know. If this is your first time applying or you are considering whether to apply, you are strongly encouraged to read it before application!

  • Deadline for application: 26 Jan 2018 9pm
  • Allotment results: 29 Jan 2018 after 3pm

Comparison of Recent SSB Issues

Coupon Yield Trend

Coupons for Singapore Savings Bonds Jan 2018 have generally decreased from last month’s issue. It varies between 1.55% pa in the 1st year to 2.75% pa in the 10th year. The table below summarises the coupon yields (in %pa) of the various SSB issues in the last 6 months.

Issue DateMaturity DateYear 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10

Average Returns Trend

The average returns have therefore also decreased from last month’s issue. The 10-year average return is 2.04%, which means that investors who hold this Singapore Savings Bonds Jan 2018 for 10 years will achieve 2.04% interest annually. The table below provides a summary of the average yearly returns (in % pa) of the recent 6 SSB issues.

Issue DateMaturity DateYear 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10

Readers should be aware of the current interest rate conditions in Singapore before deciding on investing/divesting SSBs. To obtain a more comprehensive overview of rates (Singapore Savings Bonds, Singapore Government Securities, Singapore rate benchmarks and Singapore Corporate Bonds) head to the Singapore Bonds Interest Rates page.

Review of Singapore Savings Bonds Jan 2018

Singapore Risk-free Rate Trend

The yield curve had flatten in Dec 2017. In Singapore, 3-month and 1-year short term rate SIBOR were 1.502% and 1.732% respectively on 29 Dec 2017 (compared to 1.199% and 1.402% on 30 Nov 2017. source: Association of Banks in Singapore). However, longer term yields have fallen and have headed further south in the first week of Jan 2018, in line with US rates.

Singapore Corporate Bonds Interest Rate Trend

The two ‘safest’ Singapore dollar-denominated corporate bonds listed on SGX are issued by CapitaMall Trust and Frasers Centrepoint. They provide 1.76% and 2.96% yield respectively for 3.12 years and 4.37 years to maturity as of 7 Jan 2018. In contrast, being a safer bond, Singapore Savings Bonds Jan 2018 offers average 3-year and 5-year returns of 1.60% and 1.69% respectively.

NamePrice (S$)Yield (% pa)Coupon (% pa)Maturity DateTime to Maturity (Years)
CapitaMall Trust1.04001.763.0820-Feb-213.12
Frasers Centrepoint1.02802.963.6522-May-224.37

Fixed Deposit Rates in Jan 2018

  • UOB: up to 1.20%pa for 10-month deposit (1 Jan to 31 Jan 2018)
  • Maybank: up to 1.40%pa for 12-month deposit, up to 1.55% pa for 24-month deposit
  • Standard Chartered: up to 1.25%pa for 7-month deposit, up to 1.35%pa for 10-month deposit (1 Jan to 31 Jan 2018)
  • CIMB: up to 1.20%pa for 6-month deposit, up to 1.40%pa for 12-month deposit (19 Dec 2017 to 15 Jan 2018)
  • Hong Leong Finance: up to 1.15%pa for 6-month deposit, up to 1.25%pa for 12-month deposit (19 Dec 2017 to 15 Jan 2018)

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