The latest issue of SSB Aug 2025 (SBAUG25 GX25080X) has been released. It features a first-year rate of 1.82% and a 10-year average rate of 2.29%. Most investors may feel disappointed with the rates offered as they start to dip below the 2% mark. However, with inflation easing and the rate cut cycle ongoing, would this still be a good opportunity?
SSB Aug 2025 Details
Unfortunately, SSB Aug 2025 offers significantly lower rates, with a first-year rate of 1.82% and a 10-year average rate of 2.29%. These rates are much lower than last month’s SSB offering. Again, rates continue their downward trend this year, with more rate cuts expected in the next few months.
If you are yet to fill your desired SSB allocation, you may want to take note of the following application timeline:
How Competitive Is This Month’s SSB?
SSB rates are trending downward. If you have been investing in SSB over the past two years, you may have noticed that the current rates may not be as competitive as they were last year.
The historical chart above shows that the current rate for SSB Aug 2025 is one of the lowest in recent years. We last saw these rates back in mid-2022 and earlier. So, yes, unfortunately, the current rates are not historically competitive.
But, how about future rates? Will rates continue to go down in the future?
What About Future Rates?
By following the Fed’s projection and the market’s rate expectations, we can make an educated guess about where rates may go.
Despite a moderation in inflation, as indicated by their latest FOMC meeting, the Fed maintains its current stance on interest rates. The Fed has decided to continue monitoring the data before making any future rate adjustments due to uncertainty stemming from Trump’s tariff policies and geopolitical risks.
However, the Fed also maintained that it still expected around two rate cuts for the rest of this year, with more cuts next year.
The market seems to agree with the Fed by expecting around three rate cuts for the remainder of this year:
If these projections are correct, we can expect future SSB rates to continue declining following the pace of these rate cuts.
We can also attempt to predict next month’s SSB rates by following the current market price of the Singapore government’s 10-year bond yield.
The chart shows the historical 10-year bond yield of the Singapore government bond. SSB tends to track the yield of the 10-year bond. If the trend continues or the yield remains stable, we can expect next month’s SSB to be lower than the current SSB Aug 2025 rates.
However, please note that as we are still early in the month, yields may fluctuate further. Therefore, consider this prediction as purely speculative.
What Do We Do?
We have anticipated lower rates over the past two years and have migrated our short—to medium-term cash allocation from T-bills to SSB to lock in higher rates for a longer period, up to ten years.
We like SSB because it allows monthly redemption without any penalty, while still accruing interest.
Because our SSB rates are higher than this month’s SSB rates, we will not be participating this month.
Will you be applying this month? If so, follow our step-by-step guide on how to buy SSB.
