Average interest per annual for 1-year and 10-year period
May 2020 IssueAverage Interest Per Year (over 10 years): 1.39%Application Closes: 9.00pm, 27 April 2020Details on this month SSB can be found on SGS website
As the Fed reduces the interest rate to close to zero, the SSB interest rate also collapsed to a new low of 1.39% if you held the bond for 10 years. The 1-year interest rate also dropped drastically to below 1%. What this means to me is that the government does not want our money. Lowering interest rate is one of the ways to stimulate the economy by encouraging more spending.
This week, one of the focus is probably on the results of a few REITs which released their quarterly results. Retail investors are concerned at how the pandemic has affected performance and how much dividend will be cut. Some of REITs will be cutting DPU over 50% in order