MAS has released the latest SSB July 2025 (SBJUL25 GX25070Z): a first-year rate of 2.06% and a 10-year average of 2.49%. Due to a significantly lower interest rate than the previous month, this month’s SSB offering will likely hold little appeal for most investors. Should we consider this month’s offering, given that the interest rate cut cycle is ongoing?
Details for SSB July 2025
The SSB July 2025 offers lower rates, with a first-year rate of 2.06% and a 10-year average rate of 2.49%. This month, we continue to observe decreasing SSB rates over the past several months.
If you are interested in the SSB July 2025, please take note of the following application timeline:
Competitiveness
If you have invested in SSB over the past two years, you may find the current rates disappointing. However, as inflation rates decrease and the rate cut cycle continues, this is not surprising and was expected.
The chart above shows the historical SSB rates over the past few years. This month’s SSB is the lowest it has been in recent years, returning to the rates seen in mid-2022. So, unfortunately, this month’s offering is not competitive historically.
However, with the rate cut cycle ongoing, if interest rates are expected to decrease further, could this SSB July 2025 still be a decent option?
Future Rates Projection
To answer the question above, we can try to guess where interest rates will go in the next several months.
The Fed kept rates steady during its latest FOMC meeting, opting to monitor inflation and economic data due to the potential disruption from tariffs. Regardless, the Fed expects the rate cut cycle to continue.
The market seems to agree with the Fed and is expecting two rate cuts for the remainder of this year:
If the Fed and the market are correct in projecting future rate movements, we can expect future SSB rates to continue to decline following the pace of these rate cuts.
Although we know the trend will be lower over the next several months, most of our readers will probably be more interested in next month’s offering rates. So, how about next month’s SSB?
The chart above shows the 10-year Singapore government bond yield. SSB roughly tracks this bond yield movement. We can see that the rates have continued to decline in recent months. If this trend continues, we can expect next month’s SSB 10-year average rate to be slightly lower.
Since it is still early in the month, predicting movements is difficult as more volatility may occur. Please take this guess for entertainment purposes only.
What Do We Do?
Last year, we completed the migration from T-bills to SSB because we anticipated a decline in interest rates. We use SSB to allocate our short- to medium-term cash. SSB offers decent liquidity by allowing monthly redemption without penalty and locking higher rates for up to ten years.
Since our SSB holdings have higher rates than the SSB July 2025 rates, we will not participate in this month’s SSB.
Will you be applying this month? If so, follow our step-by-step guide on how to buy SSB.
