What happened?
Tesla...Tesla soars, REITs bounce & T-bill yields fall
There’s one thing that’s clear from this week’s Treasury Bill (T-bill) auctions – interest rates are coming down.
The 1-year T-bill auction ended with a cut-off yield of 3.87% p.a., below the best fixed deposit rates in the market.
The cut-off yield on the 10-year SGS bond auction was at 2.86% p.a., below the 10-year average yield on the latest Singapore Savings Bonds (SSBs)
Interestingly, there were less applications for the SSBs than the issuance size of $700 million. This marked a sharp reversal from a few months ago, when many were concerned about not getting sufficient allocation.
On the other hand, REITs had a big bounce with the bond yields starting to come down. In this week feature, we analyse whether it might be time to re-look at REITs once again.
Source: Bloomberg. Price as of market close on 27 Jan
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