The closing yield on the 1-year T-bill has risen to 3.83%, above the best fixed deposit rate and close to the 6-month T-bill cut-off yield. What happened? After the surge in applications for the latest 6-month Singapore T-bill, many investors have also taken notice of the upcoming 1-year Singapore T-bill auction on 19 October 2023. After all, while the 6-month Singapore T-bill auction takes place every two weeks, the 1-year T-bill auction only happens once every three months. This led to numerous questions about whether it might be worthwhile participating in the 1-year T-bill auction (BY23103V). Let us look at a few indicators to understand what is the expected yield on the 1-year T-bill, and whether it might be a better investment compared to the 6-month T-bill and fixed deposits. Source: MAS What is the expected yield on the 1-year Singapore T-bill? Looking at daily market prices published by the MAS,...