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 Singapore Savings Bonds: Everything You Need to Know. 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 DateMaturity DateYear 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10
Dec-17Dec-271.261.521.681.822.022.262.502.732.973.19
Nov-17Nov-271.211.361.551.751.962.182.412.642.873.10
Oct-17Oct-271.191.341.551.782.012.252.502.763.023.28
Sep-17Sep-271.151.321.521.731.972.232.522.803.083.35
Aug-17Aug-271.051.401.591.751.952.202.422.642.873.11
Jul-17Jul-271.041.391.641.872.092.302.502.702.923.18

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 DateMaturity DateYear 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10
Dec-17Dec-271.261.391.481.571.651.751.851.952.062.16
Nov-17Nov-271.211.281.371.461.561.661.761.861.962.07
Oct-17Oct-271.191.261.361.461.571.681.791.902.012.13
Sep-17Sep-271.151.231.331.431.531.641.761.882.002.12
Aug-17Aug-271.051.221.341.441.541.651.751.851.962.06
Jul-17Jul-271.041.211.351.481.601.711.821.922.022.12

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.

NamePrice (S$)Yield (% pa)Coupon (% pa)Maturity DateTime to Maturity (Years)
CapitaMall Trust1.04001.823.0820-Feb-213.28
Frasers Centrepoint1.04202.103.6522-May-224.53

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

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