We are now moving into the 3rd quarter of 2026. There was a significant change in the Federal Reserve during the quarter, with a leadership under new Chair Kevin Warsh. There was strong emphasis on a rigorous commitment to price stability as inflation expectations rise due to persistent supply uncertainties and elevated energy costs.
The Federal Reserve on 17 June 2026 held US interest rates between 3.50% and 3.75% after Kevin Warsh’s first meeting in charge of the central bank. Fed governors were split on whether to keep rates steady or increase them in a bid to tame inflation, which has been pushed up by the US-Israel war in Iran.
Website: Warsh to review how Fed works after holding US interest rates at first meeting
Disclaimer: Not financial advice. This content is provided for general informational purposes only and does not constitute financial, investment, legal, or tax advice. The information presented is based on publicly available data and estimates that may be subject to change without notice. It does not take into account your individual financial situation, investment objectives, risk tolerance, or specific needs.
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Singapore Savings Bond
The Singapore Savings Bond (“SSB”) for June 2026 issuance has a 10-year average return of 2.06%. As the SSB is backed by the Singapore Government and has a credit rating of AAA, for now this is one of the safest investments out there. Accounting for rounding and simplicity, 2.00% shall be applied as the risk-free rate for articles during the quarter, taking into consideration the interest rates towards the end of the month of June 2026.
Website: SBAUG26 GX26080T Bond Details
The June 2026 daily 10-year average yield rates from MAS e-service website are extracted as below for confirmation.
| June 2026 Date | 10-Year Yield |
|---|---|
| 2 | 2.02% |
| 3 | 2.05% |
| 4 | 2.09% |
| 5 | 2.09% |
| 8 | 2.18% |
| 9 | 2.13% |
| 10 | 2.11% |
| 11 | 2.09% |
| 12 | 2.02% |
| 15 | 2.00% |
| 16 | 2.00% |
| 17 | 2.00% |
| 18 | 2.02% |
| 19 | 2.06% |
| 22 | 2.11% |
| 23 | 2.07% |
| 24 | 2.07% |
| 25 | 2.03% |
| 26 | 2.01% |
| 29 | 2.04% |
| 30 | 2.04% |
| Average | 2.06% |
Summary
With an applied market risk premium of 2.50% and the risk-free rate of approximately 2.00%, this would translate to an expected dividend yield to decrease to 4.50%.
It should be noted that securities offering yields materially in excess of 4.50% may be subject to heightened levels of credit, market, and business risk. Higher yields may reflect increased uncertainty regarding the issuer’s financial condition or future cash flow sustainability. Investors should not rely solely on dividend yield as an indicator of investment attractiveness and are encouraged to conduct a comprehensive assessment of the issuer’s fundamentals, including management quality, financial strength, and long-term business viability, prior to making any investment decision.
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