The February issue of Singapore Savings Bonds are out.

Issue date will be 1 Feb 2018 for a tenor of 10 years, maturing on 1 Feb 2028.

Yields are 1.55% for 1 year and 2.04% for 10 years.

Those interested can apply through DBS/POSB, OCBC, UOB ATMs and internet banking.

If you invest S$10,000 and hold the bond to maturity, you will get a total payout of S$2,062.

Singapore’s 10 year bond yields have been on a downtrend since beginning of 2016.

At present rates, it is close to the 2.0% psychological mark. Rates have fallen below 2.0% only a few times in the past, namely late 2010, 2012, 2013 and late 2016.

Yield curve inversion may be something to look out for in future…