The closing date for the current issue of Singapore Savings Bonds (Sep 2024) is 27 August 2024 at 9 p.m.
We have exactly one day from the closing date, and I thought this might be a timely read if you are still deciding whether to invest in this issue of SSB.
Looking at the returns, it isn’t particularly attractive compared to the previous issues such as June 2024 (3.33%), July 2024 (3.30%) and August 2024 (3.22%).
However, it is worth noting that a three per cent guaranteed yield for ten years for an extremely safe place for semi-liquid emergency funds is still rather appealing.
Are you planning to go for this issue?
Table of ContentsRate Cuts Are (Really) Coming
The U.S. jobless rate rose to 4.3 percent in July and is currently at its highest level since late 2021.
The Federal Reserve is finally putting rate cuts on the table, with the possibility of more aggressive easing to prevent a severe downturn.
By now, the genie is probably out of the bottle and we will likely be getting either a 0.25% or a 0.50% cut in September 2024.
Nobody knows what will happen, but it is possible that a series of interest rate cuts could continue all the way into the end of 2025.
The Black Monday of 2024 saw unprecedented fear in the market, and interest rates traders expected 3 cuts totalling 1.25% by December 2024.
During peak fear in the market, 5 August 2024Sub-3% Returns Is Back In Play For October 2024
From what was already announced and and what we can see from existing data, the October 2024 issue of Singapore Savings Bonds will likely see a yield of less than than 3%.
This is because the golden rule is that an SSB