SSB Interest Rates Jun 2018 Up to 3.12%pa: Apply by 25 May

SSB Jun 2018

This is a quick mid-month update on Singapore Savings Bonds Interest Rates for boys and girls who are gunning for Singapore Savings Bonds SSB Jun 2018.

Read on for recap on SSB Interest Rates for Jun 2018 issue and predicted SSB Interest Rates for Jul 2018 issue.

APPLY BY 25 May 2018

Read our exclusive review of SSB Jun 2018 in our MUST-READ Latest Singapore Savings Bonds Investment Guide. Head there now.

 

Details of this issuance is summarised below.

  • Bond ID: GX18060H
  • Tranche size: S$200 million
  • Issue date: 1 Jun 2018
  • Maturity date: 1 Jun 2028
  • Interest payment dates: 1 Jun, 1 Dec every year

SSB Interest Rates Jun 2018

The table below recaps the Singapore Savings Bonds Interest Rates for Jun 2018 issue. It ranges from 1.68% in Year 1 to 3.12% in Year 10, better than the rates offered by SSB May 2018. The average return starts from 1.68% to 2.43% in Year 1 and Year 10 respectively.

Coupons (% pa)
Average Returns (% pa)
Year 11.681.68
Year 22.141.91
Year 32.212.01
Year 42.212.06
Year 52.302.10
Year 62.522.17
Year 72.672.24
Year 82.812.30
Year 92.962.37
Year 103.122.43
 

SSB Interest Rates Jul 2018 Predicted

As of 22 May, this month’s average 1Y, 2Y, 5Y and 10Y SGS benchmark rates are 1.7%, 2.0%, 2.2% and 2.6% (see table below). The average returns that SSB Jul 2018 will offer for Year 1, Year 2, Year 3 and Year 10 are based on them.

Comparing with Singapore Savings Bonds Interest Rates Jun 2018 (see table above), SSB Interest Rates Jul 2018 will be more attractive baring any huge rate movement in the last few trading days of this month.

Day of Month in May1Y Yield Rate (% pa)2Y Yield Rate (% pa)5Y Yield Rate (% pa)10Y Yield Rate (% pa)
21.741.962.212.63
31.731.952.202.61
41.731.942.182.59
71.731.952.202.60
81.731.972.222.62
91.732.002.252.65
101.731.992.222.62
111.721.972.192.59
141.711.952.182.59
151.721.972.222.63
161.711.962.232.65
171.721.972.272.68
181.731.952.272.67
211.721.952.272.68
221.721.942.272.67
Average1.7%2.0%2.2%2.6%

Reason: MAS uses SGS benchmark rates for the current month to calculate SSB interest rates for the next month’s issuance.

For the purpose of calculating the Step-up Coupon rates for Savings Bonds, the one, two, five and ten-year benchmark SGS yields are used as reference. These reference yields will be based on the simple average of the respective daily SGS benchmark yields from the month before the public notice of issuance (the “reference SGS yields”), as provided on the “Daily SGS Prices” page of the SGS website (https://secure.sgs.gov.sg/fdanet/SgsBenchmarkIssuePrices.aspx). Reference SGS yields for tenors between the benchmark issuances are interpolated using a hermite spline function. (Extracted from Para 4.2. of MAS Technical Note on Singapore Savings Bonds)

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