So the next 6-month T-Bills auction is on 14 May 2024. After closing as high as 4.07% in late 2023. T-Bills yields then dropped as low as 3.54%. In the most recent auction however, T-Bills closed at 3.75% yield. Bank fixed deposit rates have been steadily declining in 2024 – with the best fixed deposit only offering 3.25% for 6 months. So at 3.75%, 6-month T-Bills are a much better buy than bank Fixed Deposits. That said, the latest Singapore Savings Bonds offer very attractive yields at 3.33% – which given that this is locked in for 10 years and can be redeemed any time, is a decent alternative to T-Bills. Couple of questions I wanted to discuss today:

1. What is the estimated yield on the next 6-month T-Bills auction?
2. Are T-Bills a better buy than Singapore Savings Bonds, money market funds or fixed deposits?
3. Where to park cash today to maximise yield and liquidity?

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