Dear readers, the next upcoming 6-month T-bill is BS24104T, with the following key details:
Auction date: 29 Feb 24
Issue date: 5 Mar 24
Maturity date: 3 Sep 24
The question on top of many will be what the cut-off yield (interest rate) of BS24104T would be.
Before we take a look at a possible cut-off yield of the T-bill, let us have a quick recap of the cut-off yield of preceding tranches of the Singapore’s 6-month T-bills as follows.
BS24103H, auction date: 15 Feb 24; cut-off yield of 3.66% per annum.
BS24102S, auction date: 1 Feb 24; cut-off yield of 3.54% per annum.
BS24101Z, auction date: 18 Jan 24; cut-off yield of 3.70% per annum.
BS24100F, auction date: 4 Jan 24; cut-off yield of 3.74% per annum.
BS23125H, auction date: 20 Dec 23; cut-off yield of 3.73% per annum.
BS23124Z, auction date: 7 Dec 23; cut-off yield of 3.74% per annum.
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.
There is quite a lot of data as above, isn’t it? But for a quick analysis, we can note that the cut-off yields of Singapore’s 6-month T-bills seems to have reach a plateau at around 3.74% and thereafter, there has been a consecutive decline in the cut-off yields for two tranches: BS24101Z and BS24102S.
The most recent BS24103H 6-month T-bill surprises many for instead of an expected continual decline in cut-off yields, given the macro environment, the cut-off yield of BS24103H increased to 3.66% per annum.
So, from this point on, it could either be an up or down for BS24104T.
Definitely, such a projection as aforementioned is not useful: everyone can guess in a similar manner.
For myself, based on the average of the cut-off yields of the most 3 recent 6-month T-bills, i.e. from BS24101Z to BS24103H, I would give a 3.63% per annum for BS24104T.
But still, I am of the view that the cut-off yield of BS24104T could also reach the 3.50%+ range and I would set a floor of 3.55% per annum cut-off yield for the bond.
Hence, my projection: 3.55% to 3.63% per annum for BS24104T 6-month T-bill.
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!
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