The Feb issue for Singapore Savings Bonds was quite disappointing as both the interest rates for  short and long term were lower and did not match up to the previous month issue. The interest rate for the first 3 years remains constant and there is no premium in holding the bond for a longer period. Without any doubt, there is no need for me to replace my existing bond and no action is needed this month. For those who are interested in subscribing, I guess this will also be temporary and you will be replacing them once there are issues with better interest rates.

We continue to observe a flattening yield curve with the gap between the 1-year and 10-year interest rates getting smaller and smaller. It was suggested that