The next 6-month T-Bills auction is on 4 July 2024. Generally speaking – T-Bills yields have been steadily declining of late, due to market expectations of interest rate cuts in the second half of 2024. This follow the trend of bank fixed deposits, which have also been on a steady decline. However in the most recent 2 auction, T-Bills yields bucked the recent trend and jumped to 3.76% and 3.74% respectively. Will this signal higher yields going forward? Or will T-Bills yields continue their downtrend? Couple of questions I wanted to discuss today:

1. What is the estimated yield on the next 6-month T-Bills auction? Will yields go up or down?
2. Should you buy Fixed Deposit, Money Market Funds or T-Bills for highest yield / liquidity?
3. Where to park cash today to maximise yield and liquidity?

Next T-Bills auction is on 4 July (Thurs) – BS24113N 6-Month T-bill Next 6 months T-Bills auction is on 4 July (Thurs). This means that:...