Dear readers, the auction result of the latest Singapore 6-month Treasury bill (T-bill), BS23115E was announced today.
In a previous post, I have estimated that the cut-off yield of BS23115E to be near 3.80% per annum, given cut-off yields of recent tranches.
BS23114A, auction date: 20 Jul 23; cut-off yield of 3.85% per annum
BS23113V, auction date: 6 Jul 23; cut-off yield of 3.99% per annum
BS23112N, auction date: 22 Jun 23; cut-off yield of 3.89% p.a. per annum
BS23111W, auction date: 8 Jun 23; cut-off yield of 3.84% p.a. per annum
I was not exactly correct. The cut-off yield of BS23115E was 3.75% per annum and this is by far, the lowest of recent tranches of 6-month T-bills.
And the above is not just my only insight.
Consider the cut-off yield of the most recent one-year Singapore Treasury bill (T-bill), BY23102N, which is 3.74% per annum, we can note that the cut-off yield of both the 6-month and 1-year T-bill is almost identical!
I believe the declining trend of the 6-month T-bill should continue given the even lower cut-off of the most recent BS23115E T-bill.
And in case, the longer-term interest also are to trend lower, savers should lock in the higher interest rates now for a longer term: the Sep 23 Singapore Savings Bonds at 3.06% per annum for 10-year is a reasonable longer-term bond.
That’s it for my insights today. I Thank you once again for your support of SG STOCKS INVESTING, your Money and Lifestyle magazine! 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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