The Singapore Savings Bond SSB Mar 2025 has a slightly improved first-year rate of 2.83%, while the 10-year average yield jumped to 2.97%. These figures follow the trend of rising rates in the past few months. Now that the Fed has started its rate-cut cycle, should we consider this month’s SSB offering?
SSB Mar 2025
This month’s SSB offering (SBMAR25 GX25030N) offers decent rates of 2.83% for the first year and 2.97% for the 10-year average. In recent months, we have observed a rising rate trend, and this month’s offering continues this trend with slightly higher rates than last month.
With US inflation moderating and the Fed embarking on its rate-cut cycle, the recent rise in SSB rates could be your opportunity to fill your desired allocation.
If you are interested in this SSB Mar 2025, please take note of the following application timeline:
How Competitive Is This Month’s SSB?
The chart shows that SSB rates have risen in the last four months. The 2.97% 10-year average rate for this SSB in March 2025 is a decent bump from the previous month’s 2.82%.
Zooming further, rates were noticeably higher from late 2022 to 2024. However, compared to 2021, today’s rates remain significantly higher.
Since the Fed has started its rate-cut cycle, long-term rates will probably decline following the pace of the cuts. With the recent bump in SSB rates, this month’s offering could be your opportunity to lock in the higher rates for longer if you have yet to fill in your desired allocation.
Future Projections
In its latest projection, the Fed expects two rate cuts this year. The market is roughly aligned, expecting one to two rate cuts this year.
Barring any black swan event, in the long run, we can anticipate that the interest rates offered by SSB will gradually decrease following the pace of the rate cuts.
In the short term, SSB generally tracks the market yield of the Singapore government bond, which we can see in the following chart:
The chart shows that the yield has been declining very slightly recently. If there is little movement from the current market yield, we can expect next month’s SSB to be slightly lower, though the difference may not be significant.
What Do We Do?
We use SSB to park our short- to medium-term allocation because it allows us to lock the current higher rates for up to ten years while still allowing monthly redemption without penalty.
Because we expect long-term interest rates to decline further from the current rate, we will keep parking our cash into SSB to enjoy the higher rates for longer.
We have optimized our SSB allocation in the past two years. Because this SSB March 2025 does not offer better rates than what we already have, we won’t participate in this month’s offering.
Will you be applying for this month’s SSB? If so, you may follow our step-by-step guide on how to buy SSB.
