Dear readers, BS24108V just closed recently with an auction on 25 Apr 2024.
I have expected the cut-off yield of the T-bill remains to be above 3.70% per annum, given the recent trend. I was correct: BS24108V did not disappoint: cut-off rate was just 0.01% lower than the preceding T-bill, and still strong at 3.74% per annum!
With the close of this T-bill, let us take a look at performance of T-bills with auction dates this year:
BS24108N, auction date: 25 Apr 24; cut-off yield of 3.74% per annum
BS24107N, auction date: 11 Apr 24; cut-off yield of 3.75% per annum
BS24106W, auction date: 27 Mar 24; cut-off yield of 3.80% per annum
BS24105X, auction date: 14 Mar 24; cut-off yield of 3.78% per annum
BS24104T, auction date: 29 Feb 24; cut-off yield of 3.80% per annum
BS24103H, auction date: 15 Feb 24; cut-off yield of 3.66% per annum.
BS24102S, auction date: 1 Feb 24; cut-off yield of 3.54% per annum.
BS24101Z, auction date: 18 Jan 24; cut-off yield of 3.70% per annum.
BS24100F, auction date: 4 Jan 24; cut-off yield of 3.74% per annum.
Except for the T-bills, whose auction dates were in the first half of Feb 2024, the cut-off yields of the T-bills issued this year was above 3.70% per annum: this is a very reasonable and robust yields and helps to explain why T-bills are still so popular with savers.
However, given 6-month T-bills can be held for only 6 months, for longer-term plan to grow one’s savings at risk-free interest rates, one should have a longer-term plan: and one of these plans could be to invest in the Singapore Savings Bonds, and accept around 0.70% per annum interest per year. In gist, secure a longer-term interest rate growth at lower rates.