The next 6-month T-Bills auction is on 4 July 2024.
Generally speaking – T-Bills yields have been steadily declining of late, due to market expectations of interest rate cuts in the second half of 2024.
This follow the trend of bank fixed deposits, which have also been on a steady decline.
However in the most recent 2 auction, T-Bills yields bucked the recent trend and jumped to 3.76% and 3.74% respectively.
Will this signal higher yields going forward? Or will T-Bills yields continue their downtrend?
Couple of questions I wanted to discuss today:
What is the estimated yield on the next 6-month T-Bills auction? Will yields go up or down? Should you buy Fixed Deposit, Money Market Funds or T-Bills for highest yield / liquidity? Where to park cash today to maximise yield and liquidity?
Next T-Bills auction is on 4 July (Thurs) – BS24113N 6-Month T-bill
Next 6 months T-Bills auction is on 4 July (Thurs).
This means that:
For cash or SRS applications, the deadline is 9pm on 3 July (Wed) For CPF-OA applications, the deadline is 9pm on 2 July (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? – BS24113N 6-Month T-bill
I’ll split the analysis up into 2 parts:
Fundamental perspective (economic growth, inflation,
