Bonds Singapore Market

Singapore Savings Bond (SSB) Jan 2023 Yield Will Likely Be Lower

Calvin Lo

10-year SGS bond yields have been falling since U.S. Oct CPI was reported on 10th Nov 2022, as expectations of the Fed slowing interest rate hikes has increased. 10Y SGS yield has fallen off its highs to around 3.13% as of time of writing. The last T-bill auction on 10th Nov 2022 also had lower cut-off yield at 4%.

Source: Trading Economics

According to the CME FedWatch tool, the probability of a 50 bps rate hike at the next Fed meeting in Dec 2022 is at 76%.

Source: CME FedWatch tool

Since SSB for Jan 2023 will be based on the average daily 10Y SGS yield for Nov 2022, we can start to make a calculated guess about what next month’s SSB yield might be. With around 1.5 weeks left for Nov, the average is now hovering around 3.4%. But if assuming yields average around 3.13% for the rest of the month, SSB yield will end up around 3.3%.

If you want to lock in the higher yield for Dec SSB for the next 10 years, make sure you apply by 25th Nov 2022.

Source: MAS

Personally, I’ve applied for $20k of Dec SSB. See my previous post about Dec SSB issuance.

I’ve also compiled some stats and charts from MAS website on my SSB tracker page.

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