HomeSG Stocks InvestingBY24101X 1-YEAR Treasury T-BILL: EXPECTED INTEREST RATE (CUT-OFF YIELD)

BY24101X 1-YEAR Treasury T-BILL: EXPECTED INTEREST RATE (CUT-OFF YIELD)

Dear readers, there is an upcoming 1-Year Treasury Bill (T-bill), BY24101X which will be going for the auction on 18 Apr 24.

Unlike 6-month T-bills, which are issued twice every month, 1-Year T-bills are issued less frequently, with issuance only once every quarter.

With a longer holding period (1-year versus 6-month), it is only inevitable that the interest rate of 1-year T-bills are lower than for 6-month T-bill.

Let us take a look at the interest rate (cut-off yields) of recent 1-year T-bills:

3.45% per annum for BY24100T (Jan 24)

3.7% per annum for BY23103V (Oct 23)

3.74% per annum BY23102N (Jul 23)

For individuals who have applied for and were successfully allotted the 1-year T-bills last year, the 3.7% plus per annum interest rates, on looking now, are indeed very decent! But back then, the interest rates of 6-month T-bills were, of course, even higher!

With the cut-off yield of the latest 6-month T-bill, BS24107N closing lower than the previous T-bill, I believe the cut-off yield of the upcoming 1-year T-bill, BY24101X should not exceed the 3.45%: I project a 3.30% to 3.40% per annum for the interest rate of BY24101X.

Most Popular