Dear readers, the most recent 6-month T-bill, BS25100E closed its auction yesterday with a cut-off yield of 3.05% per annum.
This yield is as what I have projected accurately to be higher than the yields of the previous tranches of the 6-month T-bills.
Definitely, the yields of T-bills are significantly lower in the current days then before (when interest rates were high). In the current climate, the general expectation and consensus is for interest rates to come down, though the trend now may not be as linear with what the policies of the incoming US President Donald Trump may bring.
However, I hope you can agree with me that the 3.05% per annum interest rates which is almost risk-free and higher than the interest rates of what many banks can offer is really still pretty decent in the current days.
And also not forgetting Singapore Savings Bonds where the current tranche which launches this month (SBFeb25) provides an annual interest rate of 2.82% per annum over 10 years, which to me, at a risk-free premium, is also decent as well.
When it comes to equities, the current markets are trading at one of the highest. I project there are ample opportunities for markets to come down and provide investors with some good entry points.