The latest SSB Jan 2026 (SBJAN26 GX26010A) has been released: the first-year rate is 1.33%, and the ten-year average rate is 1.99%. Great, this is the second month the rate has climbed after months of declining rates. Should we consider this month’s SSB given that we are in the midst of a rate-cut cycle?
SSB Jan 2025 Details
Great news for investors, this is another month of higher SSB rates, yay! After months of declining rates, we finally see a reversal of this trend. The first-year rate is still slightly lower at 1.33%, while the 10-year average jumped to 1.99%.
Despite the increase, investors should still be aware that we are already in the middle of a rate-cut cycle, which may continue to put downward pressure on rates in the coming months.
Are you interested in this SSB Jan 2025 offering? If so, please take note of the following application timeline:
Competitiveness
Although the 10-year rate is higher than last month’s rate, how does it compare historically?
We can observe from the chart that SSB rates have been much higher over the past few years, but have been in a massive downtrend since the start of this year. Based on this observation, unfortunately, the current rates are not competitive historically.
Future Rates Projection
How about future rates? Although it is impossible to predict with certainty, we can still make an educated guess by following the guidance from the latest Fed’s FOMC meeting. Previously, the Fed had been projecting a rate cut at the upcoming December FOMC meeting, but has recently cast doubt on the cut amid sticky inflation.
The market seems to agree with the Fed’s assessment and also projects a rate cut this coming December, with more rate cuts next year.
Should this projection hold, we can expect SSB rates to decline at the same pace as these rate cuts.
How about Next Month’s Rate?
To make an educated guess for next month’s SSB rates, we can look at the movement of the Singapore government 10-year bond yield. SSB rates typically track this yield movement.
We can observe from the chart that the rates have been declining, but recently saw a slight bump. The good news is that we continue to see bond yields rise. Should this trend persist, we can expect a slight increase in next month’s rates.
We are still early in the month, so rates may continue to move up and down throughout the month, so please take this guess with a grain of salt 🙂
What Do We Do?
We love SSB because it lets us lock in rates for up to 10 years while still allowing monthly redemptions with accrued interest.
We allocate our short- and medium-term cash to SSB to benefit from higher rates while retaining the flexibility to redeem monthly without penalty. We also migrated all our T-bills into SSB last year to lock in higher rates for much longer.
Because this SSB Jan 2026 does not offer better rates than our current holdings, we will not be participating in this month’s SSB.
Will you be participating in this month’s SSB? If so, follow our step-by-step guide to buying SSB.
