As most of you would know. There are only four 1-year T-Bills each year – one every quarter. And the next one is coming up on 18 April – so if you want 1-year T-Bills you really should apply as the next one wouldn’t be for another 3 months. Given expectations over interest rate cuts in 2024/2025. 1-year T-Bills might be a good way to lock in interest rates going forward, if you don’t need the liquidity. Especially for CPF-OA buyers, as you minimise the lost interest from rolling over 6-month T-Bills. The problem of course, is that if everyone thinks this way, then you’ll see a lot of demand for the 1-year T-Bills, sending yields down. Couple of questions I wanted to discuss today:

1. What is the estimated yield on the next 1-year T-Bills?
2. Should you buy 6-month or 1-year T-Bills? What about for CPF-OA buyers?
3. Where to park cash – 1 year T-Bills vs 6-month T-Bills vs Fixed Deposits or Money Market Funds?

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