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.
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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