MAS has released the latest SSB Oct 2025 (SBOCT25 GX25100S). The first-year rate is 1.56%, and the 10-year average rate is 1.93%. Unfortunately, the downward trend in interest rates continues this month. Most investors may be disappointed with these rates as the 10-year rates finally dropped below the 2% mark. Should we consider this month’s SSB if we have not yet filled our desired SSB allocation?
SSB Oct 2025 Details
This month marks the first time since April 2022 that the 10-year average rate is below the 2% mark. Investors who have been following the SSB rates over the past few years may be disappointed with these rates, as they are relatively lower than those from recent issuances. We are currently in the midst of an interest rate cut cycle, with additional cuts still anticipated throughout the year. As such, further lower SSB rates may be coming in the following several issuances.
If you are interested in this SSB Oct 2025, please take note of the following application timeline:
How Competitive Is SSB Oct 2025?
In short, the current rates are not as competitive as those in past issuances, as rates are in a downtrend. Here is the SSB interest rate historical chart over the past few years:
The chart shows the SSB Oct 2025 rates are back to the level we last saw back in mid-2022. So, yeah, unfortunately, they have not been that competitive historically.
But what if we take a closer look and see how they compare to the rates projected for next month? And what about the trend of future rates?
Future Rates Projection
We can generally anticipate where rates will go in the next several months by following the Federal Reserve’s projections regarding estimated future rates. The Fed Chair, Jerome Powell, has hinted at a possible rate cut in the coming September FOMC meeting. Should there be no unforeseen black-swan event, we expect a rate cut to be announced very soon, possibly as early as this September.
The market also expects a similar rate cut trajectory, with the first rate cut as soon as this September, followed by another rate cut the month after. More rate cuts are expected in 2026.
Should this projection hold, we can also expect SSB rates to continue their downward trend throughout this year and next.
As for next month’s SSB rates, we can estimate them by examining the Singapore government’s 10-year bond yield in the market. Generally, SSB tracks this bond yield.
The chart above shows the historical data for the Singapore government 10-year bond yield. As we can observe, the rate has been in a massive downtrend since early this year. Should this trend persist, we may continue to see slightly lower rates in the coming month’s SSB offering.
As always, please note that we are still early this month, so rates may further move as the month progresses. Please take this guess just as pure entertainment 🙂
What Do We Do?
We love SSB as it allows us to lock in interest rates for the next ten years, while still permitting monthly withdrawals without penalty. We have been using SSB to lock in our short- to medium-term cash allocation. We have also migrated all of our T-bills into SSB throughout last year, as we anticipated that interest rates would decline in the future.
Because we have filled our desired SSB allocation and our current holdings have higher rates than the SSB Oct 2025 rates, we, unfortunately, 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.
