Dear readers, the latest BS24106W 6-month T-bill closed its auction today.
In terms of cut-off rate, the T-bill has not disappointed savers: the cut-off rate was 3.80% per annum!
Why did I say a 3.80% per annum cut-off rate is not a disappointing rate? Well, let us recall recent cut-off yields of T-bills to understand:
BS24106W, auction date: 27 Mar 24; cut-off yield of 3.80% per annum
BS24105X, auction date: 14 Mar 24; cut-off yield of 3.78% per annum
BS24104T, auction date: 29 Feb 24; cut-off yield of 3.80% per annum
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.
Based on the above, 3.80% per annum cut-off rate is the highest so far for this year.
The bid-to-cover ratio for the T-bill was 2.55: $15.6 billion was the total amount applied vs $6.1 billion of the T-bill which was allotted. The bid-to-cover ratio was higher than for the previous T-bill, BS24105X with a bid-to-cover ratio of 2.29.
This goes to show that savers and investors are still keen on high interest rates and are eager to lock in these high rates while stocks last, literally and figuratively!
That’s it for my insights today. I Thank you once again for your support of SG STOCKS INVESTING, your Money and Lifestyle magazine! I also run another blog Singapore Stocks Investing with similar useful insights! 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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