Singapore Savings Bond August Yield Slips to 2.06%

The August 2026 Singapore Savings Bond (SBAUG26) carries a 10-year average yield of 2.06% per year. That is down from 2.11% on the July issue. A $10,000 investment held to maturity would grow to $12,081.

The one-year exit yield sits at 1.46%, unchanged from last month. The gap between the short and long end has narrowed. A flatter curve means less compensation for locking up capital for a decade versus taking the money out after 12 months.

Applications open from Aug. 2 through Aug. 25 via DBS, OCBC, or UOB internet banking or ATMs. Each individual can hold up to $200,000 in SSBs, including holdings in CDP and SRS accounts. Foreigners and permanent residents are eligible.

Allotment is capped at that limit but often runs much lower. In periods of high demand, like August 2022, applicants asking for $100,000 received only $9,000. When yields drop, demand tends to soften, raising the chance of receiving the full applied amount. Last month's 2.11% issue saw moderate allotments, brokers said.

Investors comparing SSBs with Treasury Bills or SGS bonds should note that the one-year SGS and six-month T-bill currently offer higher short-term yields, according to MAS data. Those instruments lack the SSB's liquidity features: no penalty for early redemption after one year, and accrued interest that compounds annually.

The August schedule: redemption requests for existing SSBs must be submitted by Aug. 25 for cash in September. New allotments will be credited to CDP accounts on Sept. 1.

The direction of SSB yields depends on the Monetary Authority of Singapore's policy stance. If the MAS holds or cuts rates, the 10-year yield could drift below 2%. If global rates push higher, the August issue may prove a relative bargain. The next data point comes with the September issue's announcement in early September.