Dear readers, the BS24110T 6-month T-bill had its auction yesterday (23 May 24).
In all, a total of S$14.5 billion was received for the total amount allotted of S$7 billion and this represents a bid-to-cover ratio of 2.07.
In a previous post, I projected that the cut-off yield of BS24110T should hover around 3.70% per annum and I was right as the cut-off yield of BS24110T was 3.65% per annum.
While still very decent, the cut-off yield of BS24110T was in fact the fourth consecutive decline as shown below:
BS24107N, auction date: 11 Apr 24; cut-off yield of 3.75% per annum
BS24108N, auction date: 25 Apr 24; cut-off yield of 3.74% per annum
BS24109A, auction date: 9 May 24; cut-off yield of 3.7% per annum
BS24110T, auction date: 23 May 24; cut-off yield of 3.65% per annum
I would say, with the expected interest rate cuts, the 6-month T-bills have been very resilient, still providing investors with a good cut-off yield.
However, as the holding of each 6-month T-bond is just for half a year, long-term savers should seek out longer term bonds if for now, their focus is on risk-free capital appreciation.
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!
