May 2025 Government Bonds: SSB Rates Continue Dipping, Plus 2 T-Bills and 5-Year SGS Bond
A third of the year has come and gone (!!) and it is May 2025. This month, the rates for Singapore Savings Bond (SSB) continues to slide, and there are the usual 2 t-bills and a 5-year Singapore Government Securities (SGS) bond up for subscription.
June 2025 SSB rates — rates drop to 2.20% to 2.56% p.a. average returns
| Year from issue date | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
|---|---|---|---|---|---|---|---|---|---|---|
| Interest percent | 2.20 | 2.20 | 2.20 | 2.40 | 2.53 | 2.59 | 2.74 | 2.88 | 3.01 | 3.12 |
| Average return per year % | 2.20 | 2.20 | 2.20 | 2.25 | 2.30 | 2.35 | 2.40 | 2.45 | 2.51 | 2.56 |
Rates have taken quite a tumble in recent months, and June 2025’s SSB is seeing an even lower return compared to last month’s SSB. Short-term rates are just 2.20% p.a. (compared to 2.49% p.a. last month) and the average return for the full 10-year tenure is 2.56% p.a. (compared to 2.69% p.a. last month).
Last month saw just S$400 million of the S$700 million offered, showing investors’ aversion to the dropping rates. This time, the tranche size is S$500 million, which likely will not see any oversubscription. 27th May 2025, 9PM is the deadline to subscribed. As usual, there is no benefit to applying early and you would want to apply as late as possible to this deadline so your money can sit somewhere else to earn interest.
I’ve been saying that the gap between SSBs and interest from bank accounts has been steadily declining, and that continues to hold true. While the rates look unattractive now, particularly compared to the previous few months, it’s still a way to “lock in” rates if one believes they will continue sliding. I did so in June and September last year.
Usual two 6-month t-bills plus one 5-year SGS bond
| Announcement Date | Auction Date | Issue Date | Maturity Date | Tenor | Type | Issue Code | ISIN Code |
|---|---|---|---|---|---|---|---|
| 29th April 2025 | 7th May 2025 | 13th May 2025 | 11th November 2025 | 6-month | T-Bill | BS25109V | SGXZ52581949 |
| 15th May 2025 | 22nd May 2025 | 27th May 2025 | 25th November 2025 | 6-month | T-Bill | BS25110H | SGXZ95105383 |
| 22nd May 2025 | 28th May 2025 | 2nd June 2025 | 1st April 2029 | 5-year | SGS Bond | N524100X | SGXF45447632 |
The latest 6-month t-bill closed at just 2.38% p.a., scoring a new record low in recent years. Using one’s CPF to invest in t-bills is obviously out of the picture here, with OA giving 2.5% p.a. without fuss.
For cash, SSB is possibly a better option. There is no reinvestment hassle after 6 months, and there is also no lock-in since you can withdraw at the start of each month.
Also available this month is a 5-year SGS bond. The last 5-year SGS bond was offered just 2 months ago and that closed at 2.61% p.a. This month’s SSB already gives about 2.30% p.a. average returns when held for 5 years, so the loss in liquidity may not be that worth it if we assume that this month’s 5-year SGS bond will also be around 2.61% p.a.
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Seth Wee was a licensed financial adviser representative from 2009 to 2025, with over 16 years of experience in Singapore’s financial advisory industry.
He started Sethisfy.com in 2019 to share practical insights on credit cards, banking products, and miles strategies, helping readers identify financial products that deliver the best value. Seth has been featured in CNA, Channel 8, Today, and a host of other publications. In 2025, he was also part of a panel at CPF’s Ready For Life festival.
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