All eyes on T-bills again. Weekly recap and what to watch in the week ahead

Invest

By Beansprout • June 3, 2023

We started the month by checking the latest rates for fixed deposits, savings accounts and SSBs. Disappointingly, the interest rates offered have fallen compared to last month. This has made T-bills look particularly attractive to many investors once again, especially with an increase in the cut-off yield in the previous auction to 3.85%.

Will the yield rise further in the upcoming T-bill auction? We look at the latest indicators to find out.

Source: Bloomberg. Price as of market close on 2 June 2023

🚀 Here's some good news

What happened?

The interest rate on the CPF Special and MediSave Accounts (SMA) will be raised to 4.01% per annum from 1 July to 30 September 2023.

What does this mean?

The increase in interest rate on the SMA came about after an increase in the 12-month average yield on the 10 year Singapore Government Securities (10YSGS) caused it to exceed the floor

...