What happened? There’s more anticipation about the upcoming Singapore 6-month T-bill auction, judging from the discussion in the Beansprout Telegram group. This might be because the cut-off yield for the 6-month T-bill rebounded to 3.93% p.a. in the previous auction. Some of you have asked whether we will see a continued increase in the 6-month T-bill yield, or it might be better to just put our money into fixed deposit. Let’s look at some of the recent trends to find out what could be the yield for the upcoming Singapore 6-month T-bill auction (BS23104X) on 2 March 2023. Source: MAS

Will the yield on 6-month T-bill rise above 4% p.a?

#1 - US bond yields have been rising sharply

There has been a sharp increase in US government bond yields in recent weeks For instance, the yield on the US 6-month government bond has risen to about 5.1% from slightly around 4.8% at the start of the month. This was driven by stronger than expected US inflation data, which led investors to predict that the Fed may have to raise interest rates more than what was forecast previously....