As you guys know, there are only four 12-month T-Bills issued each year.
And the next 12-month T-Bills auction so happens to be next week (20 April).
3 key questions I wanted to discuss today:
- What is the expected yield on the next 12 month T-Bills?
- For CPF-OA investors – 12 month T-Bills a good buy?
- For cash investors – 12 month T-Bills a better buy than 6 month T-Bills (or Fixed Deposit / Singapore Savings Bonds)?
What is the expected yield on the next 12 month T-Bills?
Let’s look at the market pricing data.
12 month T-Bills on the open market – 3.72%
12 month T-Bills trade at 3.72% on the open market today.
Note how close that is to the 6 month T-Bills – trading at 3.74%, and where the latest auction closed at 3.75%.
Based off this pricing the market expects interest rates to be flat (no hikes or cuts) 6 – 12 months from now (October 2023 – April 2024)....
