Dear readers, the latest 6-month Singapore Treasury Bill BS25105T which had recently closed surprised me once again.
The reason was that the interest rate (cut-off yield) was again not just not impressive, at just 2.56% per annum but I also noted that it was also lower than the cut-off yield of the previous Singapore Treasury T-bill (BS25104H). As recap, BS25104H offers a cut-off yield of 2.75% per annum.
There has been a turning point in Singapore’s T-bill .
For a long time, the interest rate of Singapore’s T-bill has always been higher than that for Singapore Savings Bond.
But not anymore.
Consider the following:
Singapore’s Savings Bond SBAPR25 GX25040F, which currently opens for applications has an average 10-year annual interest rate of 2.85% per annum. The first year interest rate of the Savings Bonds is 2.73% which is much higher than the 2.56% provided by the latest 6-month Singapore Treasury Bill BS25105T.
The winners among Savers are now the longer-term savers.