Well, that a 2 weeks it has been!
With 3 bank failures, Credit Suisse being bought out by UBS, and Feds saying no more rate hikes for 2023.
All while 6 month T-Bill yields plunged to 3.65%.
So I wanted to discuss 3 key questions:
1) What is the estimated yield on the next 6 month T-Bills Auction?
2) Should you buy T-Bills, Fixed Deposits, or Singapore Savings Bonds at this stage of the cycle?
3) Should you still buy T-Bills with CPF-OA?
What is the estimated yield on the next 6 month T-Bills Auction? (30 March 2023)
6 month T-Bills – 3.71%
6 month T-Bills trade at 3.71% on the open market.
MAS Bills – 3.93%
While the 12 week MAS bills trade at 3.93%.
Latest T-Bills auction closed at 3.65%
For reference, the most recent T-Bills auction closed at 3.65%.
This was the lowest yield since October 2022, and came as a shock to many.
You can see how the sharp drop in yields came despite application amounts staying relatively steady:...