Singapore Savings Bond 10-year average return hits 3.33%, highest since November 2023

At $1 billion, this is the largest amount offered year to date.

The average yield for the latest tranche of the 10-year Singapore Savings Bond (SSB) surged to 3.33%, up from an average of 3.06% at last month’s auction. This is the highest average rate since the November 2023 tranche.

That said, this is still shy of December 2022’s 3.47% peak. 

The latest tranche of bonds, which will be issued on June 3, bear a first-year interest rate of 3.26%. The rate will step up from the seventh year, reaching 3.54% on the ninth and tenth years. 

According to the Monetary Authority of Singapore’s (MAS) website, the allotment size is $1.0 billion, up from $900 million at the previous auction. This is the largest amount offered year to date. 

Applications for the SSB will close at 9pm on May 28. 

Earlier in the day, US Federal Reserve Chair Jerome Powell kept hopes alive for an interest-rate cut this year while acknowledging that a burst of inflation has reduced policymakers’ confidence that price pressures are ebbing.

Policymakers left interest rates unchanged in a range of 5.25%-5.5%, where they have been since July 2023. As recently as March, Powell said it would likely be appropriate to start cutting rates “at some point this year” — a phrase he did not repeat on May 1.