MAS has issued the latest SSB Dec 2025 (SBDEC25 GX25120E), with a first-year rate of 1.35% and a 10-year average rate of 1.85%. The slight increase in the 10-year average rate may be a relief to investors, as rates have been declining in recent issuances. With the rate-cut cycle ongoing, should we consider this month’s SSB offering?
Details & Timeline
This is the first month in a while that we have seen an increase in rates. We finally broke the trend of lower rates with this SSB Dec 2025. The first-year rate of 1.35% is a slight decrease from last month’s rate, even though the 10-year average rate has risen to 1.85%.
While the rate has increased this month, the continuation of the rate-cut cycle suggests that downward pressure on rates is likely to persist in the coming months.
If you are interested in this month’s SSB offering, you may take note of the following application timeline:
How Competitive is SSB Dec 2025?
Let us examine how this month’s rates compare to the past offerings:
The chart shows the historical SSB rates over the past few years. We can observe that the current SSB Dec 2025 rates are comparable to those back in mid 2022, while the rates between mid 2022 through 2025 have been higher. We can safely deduce that the current rates are not historically competitive.
Future Rates
Well, let the past be the past. How about future rates?
To predict where rates may be heading in the near future, we can follow the guidance from the Federal Reserve’s FOMC meeting. The Fed just cut its benchmark interest rate by 0.25% in its October FOMC meeting. According to their latest projection, they still expect one additional rate cut this year.
The market agrees with this sentiment and expects one more rate cut this December, followed by further cuts next year.
If these projections hold, we can also expect SSB rates in the coming months to continue their downward trend following the pace of the rate cuts.
Next Month’s SSB Rates Projection
For next month’s SSB rates, we can look at the trend in the 10-year Singapore government bond yield, as its movements typically influence SSB rates.
The chart shows that rates have been declining in the past several months, but saw a slight bump in the last few days. Well, we are still early in the month, and things may continue to move up or down, but if the trend persists, we can expect next month’s SSB to have higher rates. Hooray!
What Do We Do?
We utilize SSB to park our short- to medium-term cash. We love SSB for its long-term tenure while still offering the flexibility of monthly redemption, thus it is suitable for non-urgent cash allocation.
We have also migrated all of our T-bill holdings into SSB to lock in the higher rates for up to ten years.
Because all of our SSB holdings have higher rates than this SSB Dec 2025 rates, unfortunately, we will not be participating this month.
How about you? Will you be applying this month? If so, follow our step-by-step guide on how to buy SSB.
