Sunday, 20 September 2015

SSB Interest Rate Estimates

The table below shows the actual interest rates for the current month's Singapore Savings Bonds (SSB), which are computed as the average of the previous month's yields of the Singapore Government Securities (SGS). The SGS yields can be found at

The table also shows the average current month's yields of the 1-year, 2-year, 5-year and 10-year SGS to-date, which would translate to be the interest rates (roughly) for the next month's SSB if SGS yields do not change significantly for the rest of the month. The shortcoming of this estimate is that it does not take into account the SGS yields for the rest of the month. Hence, the second estimate assumes that the average SGS yields for the remaining working days of the month is the same as that for the latest available date. In the case below, the SGS yields for 23 Sep is assumed to apply for the remaining working days of the month to compute the average yields for Sep.

1-Year 2-Year 5-Year 10-Year
SSB Rates for Sep 0.96% 1.02% 2.01% 2.63%
Avg SGS Yield for Aug 0.96% 1.03% 2.03% 2.63%
Avg SGS Yield for Sep (Todate) 1.15% 1.15% 2.21% 2.81%
Avg SGS Yield for Sep (Estimated) 1.18% 1.17% 2.20% 2.78%
Difference (Todate) 0.19% 0.12% 0.18% 0.18%
Difference (Estimated) 0.21% 0.15% 0.17% 0.16%

To compute a more updated estimate using the actual SGS yields after 23 Sep, you can refer to the SGS website mentioned above for the daily SGS yields.

For a more completion explanation of the table, please refer to Sneak Preview of SSB Interest Rates.

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