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