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SSB – Sep 2019

Source: http://www.amosang.com/singapore-savings-bonds-ssb-visualizer/

This month’s tranche gives you 1.65% p.a. for the first 3 years, 3 bps lower than the previous month. The 10-year average interest rate has also fallen below the psychological 2% hurdle. For a visual idea of how far rates have fallen, look at the distance between the dark blue line (Jan 2019) and the pink line (Sep 2019). What’s a yield-hungry investor to do these days?

That was a hypothetical question — I don’t have the answer …

SSB – Aug 2019

Source: http://www.amosang.com/singapore-savings-bonds-ssb-visualizer/

This month’s SSB rates are indicated by the brown line, which comes in at 1.68% p.a. for the first 3 years. It’s a rather startling drop of 20 bps from last month! For comparison, see the blue line, which shows the interest rates from the Jan 2019 tranche. Looks like rates have fallen a fair bit. And if you hold this month’s tranche for 10 years, you would only make 2.08% p.a. Notice the sharp turn in the …

SSB – Jul 2019

Source: http://www.amosang.com/singapore-savings-bonds-ssb-visualizer/

This month’s SSB rates are indicated by the purple line, which comes in at 1.93% for the first 3 years, 7 basis points (“bps”) above last month’s tranche at 1.88% for the first 3 years. It looks like SSB rates have started to move upwards again!

Although it’s only 7 bps, I found it peculiar that interest rates could conceivably go up with the US economy is poised to go down due to the tariff tan-trumps presently going …