Dear readers, the auction results of Singapore’s latest 6-month Treasury Bill (T-bill), BS23124S was announced today. And the result? Well, the cut-off yield of the 6-month Treasury Bill was the lowest ever since Sep 2023! What happened?
Before we go into the actual cut-off yield of BS23124S, let us take a look at the cut-off yield of Singapore’s 6-month T-bills since Sep 23 as follows.
BS23123Z, auction date: 23 Nov 23; cut-off yield of 3.80% per annum.
BS23122F, auction date: 8 Nov 23; cut-off yield of 3.75% per annum.
BS23121A, auction date: 26 Oct 23; cut-off yield of 3.95% per annum.
BS23120A, auction date: 12 Oct 23; cut-off yield of 3.87% per annum.
BS23119H, auction date: 28 Sep 23; cut-off yield of 4.07% per annum.
BS23118F, auction date: 14 Sep 23; cut-off yield of 3.73% per annum.
The cut-off yield of BS23124S, as announced today, is 3.74% per annum and this was the lowest cut-off yield since 28 Sep 23. Based on my tracking of T-bill interest rates, I already know that trend is not a given.
However, 3.74% per annum is not be the lowest cut-off yield for 6-month T-bill for year 2023, there are lower, e.g. the cut-off yield for BS23117F T-bill was 3.70% per annum.
I always advocate that in the current climate of higher interest rates, savers should take opportunities of the high interest rates while these rates last and a more sustainable way will be to lock in these high interest rates for a longer period if one could rather than over a short -term period like for 6-month or 1-year T-bills.
Hence, to me, the current 3.07% per annum for a 10-year holding period of Jan 24 Singapore Savings Bonds is more attractive than the higher cut-off yield of shorter-term T-bill, as we are locking in a decent interest on a longer-term holding basis. And there is always the possibility to replace one Singapore Savings bonds holding with a higher interest Savings bonds wherever there is one.
Let’s make hay while the sun shines!
That’s it for my insights today. I Thank you once again for your support of SG STOCKS INVESTING, your Money and Lifestyle magazine! Connect with me here to follow the daily exciting and useful posts on these two blogs, Thank You for your support!
BINGE READ ALL POSTS!
Visit Home Page for more reads or Connect here!