Dear readers, the auction results of the latest one-year Singapore Treasury Bill (T-bill), BY23103V closed today, with a cut-off yield of 3.70% per annum. This is considered a good rate given that fixed deposits from banks these days have been offering consumers with fixed deposit interest rates lower than 3.70% per annum, despite some banks ratcheting up their interest rates. For example, UOB bank has increased its fixed deposit interest rate from 2.70% per annum to 3.10% per annum as shared in an earlier post.
Initially, I have shared that I thought the cut-off yield of BY23103V might be well above 4% per annum. This was because at the time of writing, then latest 6-month T-bill BS23119H had a cut-off interest rate of 4.07% per annum.
However, the latest 6-month T-bill, in BS23120A did not continue the over 4% per annum interest rate as its cut-off yield went lower to 3.87% per annum. I believe this would have moderated expectations of an over 4% per annum interest rate for BY23103V, hence some savers might not have been surprised by the 3.70% per annum cut-off yield of BY23103V.
3.70% per annum return is still to me a decent and respectable annual yield.
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