The next 6-month T-Bills auction is on 20 June 2024.
Generally speaking – T-Bills yields have been steadily declining of late.
From as high as 3.8% just a couple of auctions ago (late March).
T-Bills yields have fallen to 3.65% in the previous auction.
Surprisingly though – in the most recent auction, T-Bills yields bucked the recent trend and jumped to 3.76%.
Will this signal higher yields going forward?
Couple of questions I wanted to discuss today:
What is the estimated yield on the next 6-month T-Bills auction? Are T-Bills a better buy than Fixed Deposits, Singapore Savings Bonds, or money market funds? Where to park cash today to maximise yield and liquidity?
Next T-Bills auction is on 20 June (Thurs) – BS24112W 6-Month T-bill
Next 6 months T-Bills auction is on 20 June (Thurs).
This means that:
For cash or SRS applications, the deadline is 9pm on 19 June (Wed) For CPF-OA applications, the deadline is 9pm on 18 June (Tues)
Deadline for CPF-OA applications is same as cash applications – for DBS Bank only
Do note that for DBS Bank the deadline for CPF-OA applications (via ibanking) is the same as cash applications.
So there is no need to submit the application 2 days earlier if you’re applying with CPF via DBS.
However this is only for DBS Bank – for UOB/OCBC Bank you’ll still need to submit the CPF-OA application 2 days before.
What is the estimated yield on the next 6-month T-Bills auction? – BS24112W 6-Month T-bill
I’ll split the analysis up into 2 parts:
Fundamental perspective (economic growth, inflation, global interest rates etc) Technical perspective (supply-demand) (1) Fundamental perspective for T-Bills: T-Bills trade at 3.70% on the open market
