The surprise this week was a sharp decline in the yield on the 1-year Singapore T-bill. The cut-off yield fell to 3.45% in the latest auction from 3.7% in the previous auction. This mirrors what we have seen in the recent 6-month Singapore T-bill auction, where a surge in demand also led to lower yields. Likewise, the best fixed deposit rates offered by banks have also been declining, with the best 12-month fixed deposit rate now only at 3.3%. We find out what this may mean for the upcoming 6-month T-bill auction on 1 Feb. Source: Bloomberg. Price as of market close on 19 Jan 2024 🔎 WHAT'S THE FED'S NEXT STEP? What happened? Investors have moderated their expectations of interest rate cuts ahead of the first Federal Reserve meeting this year on 30-31 January. According to the CME Fedwatch Tool, investors are largely expecting the Fed to keep interest rates unchanged in the upcoming meeting....