Dear readers, the auction result of the latest Singapore 6-month Treasury bill (T-bill), BS24101Z, was announced yesterday.
In one of my previous posts, I have forecasted a correction in cut-off of the interest rates, given the expected reduction of US Federal Reserves’ interest rates.
In view of how the previous interest rates have seemed to plateaued at 3.73%/3.74% per annum, yesterday’s announcement of the interest rates for BS24101Z was undoubtedly a surprise!
The interest rate and cut-off yield of the T-bill is strong, at 3.70% per annum.
The bid-to-cover ratio was at 2.12: $13.6 billion in application for the bond, versus $6.4 billion for the allotment. This was up slightly from 2.09 from the last T-bill and this shows the continued confidence and interest in the Singapore’s T-bills, despites expectations of a declining interest rate going forward.
I believe the 3.7% interest rate is currently one of the Best in town, for growing one’s monies in a comparatively risk-free manner.
And 3.7% interest rate is also a surprising interest rate in this current climate of declining interest rates.
Definitely, I believe from here on, it is going to be a reduction of cut-off interest rates of T-bills, with interest rates going south!
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