Singapore Savings Bonds (SSB) was introduced to the financial markets in 2015.
The latest issue of SSB for August 2019 only offers average interest rate of 2.01% per annum if the bond is held to maturity. This was the lowest for this year.
The average interest rate (when held to maturity) started very promisingly at the start of issuance of SSB in 2015. The interest rate was 2.63% in October 2015 and then 2.78% in November 2015.
When you hold the bonds to maturity in 10 years time, the annual interest rates paid to you are shown in the table below.
|Issuance date||Average annual rate of return (p.a) % if held to 10 years|
It shows that the global economy is slowing down and global interest rates are coming down including Singapore’s. Investments will be affected negatively as a result of slowing interest rates.
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