Should you buy the 6-month or 1-year T-bill? Here’s how we’re deciding.
By Beansprout  •  October 7, 2022
  • Looking at interest rates, the current market bond yield for the Singapore 6-month T-bill is similar to the 1-year T-bill at 3.31% as of 7 October 2022. We’d also need to consider if we want to lock-in interest rates now. 
  • For Singapore T-bill purchases using CPF OA, the loss of at least one additional month of CPF interest means that it might be more worthwhile to subscribe to the 1-year T-bill, assuming that interest rates are the same. 
  • There might also be a cap to allotments for non-competitive T-bill bids, as demand for T-bill continues to grow. 
  • The eventual cut-off yield for the 6-month and 1-year Singapore T-bill will depend on the demand and supply of the T-bill. As such, some have suggested a strategy of splitting the bid across both auctions.
What happened? The one question that the Beansprout community has been asking in the past week, is whether we would subscribe to the 6-month or 1-year Singapore treasury bill (t-bill)?...
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By Beansprout
Hi, I’m Gerald! I have been working in investment analysis for more than 12 years. Often, I encounter everyday investors who find it difficult to invest. At Beansprout, we believe that with the right tools and knowledge, everyone can be an investor. Hence, we founded Beansprout to make quality investment insights more accessible. We hope that you can join us on this journey to grow your financial knowledge and confidence as an investor.

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