Dear readers, the result of the latest BS23120A 6-month T-Bill was released today and I believe it was a total disappointment to many applicants of the T-bill.
What happened?
The cut-off yield (read as interest rate per annum) of T-bill BS23119H, that is the T-bill prior to BS23120A was 4.07% per annum and it has raised expectations of some T-bill lovers and subscribers of another cut-off yield higher than 4% or even higher than 4.07% in BS23120A T-bill.
And especially since there was a trend of increasing returns, referencing to the interest rates (cut-off yields) of recent T-bills.
BS23119H, auction date: 28 Sep 23; cut-off yield of 4.07% per annum.
BS23118F, auction date: 14 Sep 23; cut-off yield of 3.73% per annum.
BS23117F, auction date: 31 Aug 23; cut-off yield of 3.70% per annum.
However, the result released today was disappointing. Not only was the cut-off yield of BS23120A lower than 4% per annum, it was some way below 4% per annum: cut off yield of BS23120A is 3.87% per annum.
As compared to previous T-bills, 3.87% per annum was lower but this is a decent rate. But I believe savers should be asking whether higher interest rates from T-bills, Singapore Savings Bonds will soon become lower. And if that is so, savers should aim to secure still good interest rate for longer term e.g. via Singapore Savings Bonds.
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