SSB Interest Rates May 2018 Up to 3.00%pa: Apply by 25 Apr

SSB May 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 May 2018.

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

APPLY BY 25 APR 2018

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

 

Details of this issuance is summarised below.

  • Bond ID: GX18050E
  • Tranche size: S$200 million
  • Issue date: 2 May 2018
  • Maturity date: 1 May 2028
  • Interest payment dates: 1 May, 1 Nov every year

SSB Interest Rates May 2018

The table below recaps the Singapore Savings Bonds Interest Rates for May 2018 issue. It ranges from 1.65% in Year 1 to 3.00% in Year 10. The average return starts from 1.65% to 2.39% in Year 1 and Year 10 respectively.

Coupons
Average Returns
Year 11.651.65
Year 21.951.80
Year 32.141.91
Year 42.282.00
Year 52.422.08
Year 62.542.15
Year 72.622.21
Year 82.722.27
Year 92.842.33
Year 103.002.39

SSB Interest Rates June 2018 Predicted

As of 23 Apr, this month’s average 1Y, 2Y, 5Y and 10Y SGS benchmark rates are 1.67%, 1.90%, 2.08% and 2.39% (see table below). The average returns that SSB June 2018 will offer for Year 1, Year 2, Year 3 and Year 10 are based on them.

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

Day of Month in Apr1Y Rate2Y Rate5Y Rate10Y Rate
21.761.902.052.31
31.751.892.072.33
41.741.872.042.31
51.701.882.072.35
61.691.892.082.38
91.691.902.082.38
101.671.902.082.39
111.661.902.082.38
121.651.882.052.37
131.641.882.062.39
161.641.882.062.40
171.621.882.052.38
181.621.892.052.37
191.611.922.092.42
201.611.932.132.49
231.611.972.202.55
Average 1.671.902.082.39

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)

 

Be the first to comment

Leave a Reply