{"id":3132,"date":"2025-01-03T15:18:49","date_gmt":"2025-01-03T07:18:49","guid":{"rendered":"https:\/\/www.wealthfor.us\/article\/?p=3132"},"modified":"2025-01-03T15:18:49","modified_gmt":"2025-01-03T07:18:49","slug":"singapore-savings-bond-ssb-feb-2025-lower-10-year-avg-of-2-82","status":"publish","type":"post","link":"https:\/\/www.wealthfor.us\/article\/singapore-savings-bond-ssb-feb-2025-lower-10-year-avg-of-2-82\/","title":{"rendered":"Singapore Savings Bond SSB Feb 2025: Lower 10-Year Avg of 2.82%"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">The <\/span><a href=\"https:\/\/www.mas.gov.sg\/bonds-and-bills\/auctions-and-issuance-calendar\/issuance-singapore-savings-bond?issue_code=GX25020H&amp;issue_date=2025-02-03\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">latest<\/span><\/a><span style=\"font-weight: 400;\"> SSB Feb 2025 offering has a slightly higher <\/span><b>first-year rate of 2.76%<\/b><span style=\"font-weight: 400;\"> but a lower <\/span><b>10-year average rate of 2.82%<\/b><span style=\"font-weight: 400;\">. These rates are roughly in line with <\/span><a href=\"https:\/\/www.wealthfor.us\/article\/singapore-savings-bond-ssb-jan-2025-10-year-avg-rate-of-2-86\/\"><span style=\"font-weight: 400;\">last month&#8217;s offering<\/span><\/a><span style=\"font-weight: 400;\">. <\/span><span style=\"font-weight: 400;\">Given that we have entered a new rate cut cycle, should we consider this month&#8217;s SSB?<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2>SSB Feb 2025 Details<\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-3133\" src=\"https:\/\/www.wealthfor.us\/article\/wp-content\/uploads\/2025\/01\/SSB-FEB-2025.png\" alt=\"SSB FEB 2025\" width=\"1080\" height=\"1080\" srcset=\"https:\/\/cdn.wealthfor.us\/uploads\/2025\/01\/SSB-FEB-2025.png 1080w, https:\/\/cdn.wealthfor.us\/uploads\/2025\/01\/SSB-FEB-2025-300x300.png 300w, https:\/\/cdn.wealthfor.us\/uploads\/2025\/01\/SSB-FEB-2025-1024x1024.png 1024w, https:\/\/cdn.wealthfor.us\/uploads\/2025\/01\/SSB-FEB-2025-150x150.png 150w, https:\/\/cdn.wealthfor.us\/uploads\/2025\/01\/SSB-FEB-2025-768x768.png 768w\" sizes=\"auto, (max-width: 1080px) 100vw, 1080px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">This month&#8217;s SSB offering (SBFEB25 GX25020H) is slightly lower than last month&#8217;s, but it still offers decent rates: 2.76% for the first year and 2.82% for the 10-year average.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Although recent US inflation data have shown that it is stickier than anticipated, the Fed has been embarking on its rate-cut cycle, with more cuts expected throughout 2025.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you have yet to fill out your desired SSB allocation, this SSB Feb 2025 can be an option to consider. Please take note of the following application timeline:<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-3134\" src=\"https:\/\/www.wealthfor.us\/article\/wp-content\/uploads\/2025\/01\/SSB-Feb-2025-Application-Timeline.png\" alt=\"SSB Feb 2025 Application Timeline\" width=\"1190\" height=\"186\" srcset=\"https:\/\/cdn.wealthfor.us\/uploads\/2025\/01\/SSB-Feb-2025-Application-Timeline.png 1190w, https:\/\/cdn.wealthfor.us\/uploads\/2025\/01\/SSB-Feb-2025-Application-Timeline-300x47.png 300w, https:\/\/cdn.wealthfor.us\/uploads\/2025\/01\/SSB-Feb-2025-Application-Timeline-1024x160.png 1024w, https:\/\/cdn.wealthfor.us\/uploads\/2025\/01\/SSB-Feb-2025-Application-Timeline-768x120.png 768w\" sizes=\"auto, (max-width: 1190px) 100vw, 1190px\" \/><\/p>\n<p>&nbsp;<\/p>\n<h2>Competitiveness<\/h2>\n<figure id=\"attachment_3135\" aria-describedby=\"caption-attachment-3135\" style=\"width: 655px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-3135\" src=\"https:\/\/www.wealthfor.us\/article\/wp-content\/uploads\/2025\/01\/SSB-Historical-Rates-up-to-Feb-2025.png\" alt=\"SSB Historical Rates up to Feb 2025\" width=\"655\" height=\"430\" srcset=\"https:\/\/cdn.wealthfor.us\/uploads\/2025\/01\/SSB-Historical-Rates-up-to-Feb-2025.png 655w, https:\/\/cdn.wealthfor.us\/uploads\/2025\/01\/SSB-Historical-Rates-up-to-Feb-2025-300x197.png 300w\" sizes=\"auto, (max-width: 655px) 100vw, 655px\" \/><figcaption id=\"caption-attachment-3135\" class=\"wp-caption-text\">The historical SSB interest rates from 2021-2025. Source: <a href=\"https:\/\/www.wealthfor.us\/article\/ssb-interest-rate-history\/\">SSB Interest Rate History<\/a><\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">Even though this month&#8217;s SSB rates are slightly lower than last month&#8217;s, the chart above shows that they are still higher than those of the previous several months.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Looking at the period from late 2022 to 2024, we can see that the rates were much higher back then. However, if we look back to 2021, we can see that today&#8217;s rates are still considerably higher.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Because the Fed has started its rate-cut cycle, we can expect rates to continue decreasing in the long term. If you have yet to fill your desired SSB allocation, this SSB Feb 2025 offering may be an option to lock in the higher rates for longer.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2>Future Rates Projections<\/h2>\n<p><span style=\"font-weight: 400;\">Since September 2024, the Fed has trimmed interest rates by a full one percentage point. They also project two additional cuts in 2025.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The market also expects more cuts coming in 2025:<\/span><\/p>\n<figure id=\"attachment_3136\" aria-describedby=\"caption-attachment-3136\" style=\"width: 405px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-3136\" src=\"https:\/\/www.wealthfor.us\/article\/wp-content\/uploads\/2025\/01\/Market-rates-expectation-Jan-2025.png\" alt=\"Market rates expectation Jan 2025\" width=\"405\" height=\"229\" srcset=\"https:\/\/cdn.wealthfor.us\/uploads\/2025\/01\/Market-rates-expectation-Jan-2025.png 405w, https:\/\/cdn.wealthfor.us\/uploads\/2025\/01\/Market-rates-expectation-Jan-2025-300x170.png 300w\" sizes=\"auto, (max-width: 405px) 100vw, 405px\" \/><figcaption id=\"caption-attachment-3136\" class=\"wp-caption-text\">Source: <a href=\"https:\/\/www.cmegroup.com\/markets\/interest-rates\/cme-fedwatch-tool.html\" target=\"_blank\" rel=\"noopener\">CME Group<\/a><\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">The table shows that the market expects two rate cuts in 2025, which aligns with what the Fed expects from its <\/span><a href=\"https:\/\/www.federalreserve.gov\/monetarypolicy\/fomccalendars.htm\"><span style=\"font-weight: 400;\">latest FOMC meeting<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With the long-term interest rates projected to decline further in 2025, we expect SSB rates to decline as well following the pace of the rate cuts.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">How about next month&#8217;s SSB? Let&#8217;s take a hint from the movement of the Singapore government bond market:<\/span><\/p>\n<figure id=\"attachment_3137\" aria-describedby=\"caption-attachment-3137\" style=\"width: 874px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-3137\" src=\"https:\/\/www.wealthfor.us\/article\/wp-content\/uploads\/2025\/01\/Singapore-government-bond-10-year-Jan-2025.png\" alt=\"Singapore government bond 10-year Jan 2025\" width=\"874\" height=\"331\" srcset=\"https:\/\/cdn.wealthfor.us\/uploads\/2025\/01\/Singapore-government-bond-10-year-Jan-2025.png 874w, https:\/\/cdn.wealthfor.us\/uploads\/2025\/01\/Singapore-government-bond-10-year-Jan-2025-300x114.png 300w, https:\/\/cdn.wealthfor.us\/uploads\/2025\/01\/Singapore-government-bond-10-year-Jan-2025-768x291.png 768w\" sizes=\"auto, (max-width: 874px) 100vw, 874px\" \/><figcaption id=\"caption-attachment-3137\" class=\"wp-caption-text\">Source: <a href=\"http:\/\/worldgovernmentbonds.com\" target=\"_blank\" rel=\"noopener\">worldgovernmentbonds.com<\/a><\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">Although it is still early, the yield has risen slightly this month. If this trend continues, next month&#8217;s SSB may offer slightly higher rates, though the difference may not be material.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2>What Do We Do?<\/h2>\n<p><span style=\"font-weight: 400;\">We utilize SSB to park our short\u2014and medium-term cash because it allows us to lock in these higher rates for much longer while still allowing us to withdraw every month without penalty.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With the expectation of declining rates in the future, we have migrated all of our T-bills into SSB to lock in these higher rates for much longer.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We have been optimizing our SSB allocation over the past two years. Since this month&#8217;s SSB does not offer better rates than our current holdings, we will likely not participate this month.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Will you be applying for this month&#8217;s SSB? If so, you may follow our step-by-step guide on <\/span><a href=\"https:\/\/www.wealthfor.us\/article\/how-to-buy-ssb\/\"><span style=\"font-weight: 400;\">how to buy SSB<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The latest SSB Feb 2025 offering has a slightly higher first-year rate of 2.76% but a lower 10-year average rate of 2.82%. These rates are roughly in line with last month&#8217;s offering. Given that we have entered a new rate cut cycle, should we consider this month&#8217;s SSB? &nbsp; SSB Feb 2025 Details This month&#8217;s&hellip; <a class=\"more-link\" href=\"https:\/\/www.wealthfor.us\/article\/singapore-savings-bond-ssb-feb-2025-lower-10-year-avg-of-2-82\/\">Continue reading <span class=\"screen-reader-text\">Singapore Savings Bond SSB Feb 2025: Lower 10-Year Avg of 2.82%<\/span><\/a><\/p>\n","protected":false},"author":3,"featured_media":3138,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[101,102],"tags":[],"class_list":["post-3132","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fixed-income","category-singapore","entry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Singapore Savings Bond SSB Feb 2025: Lower 10-Yr Avg of 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