Weaker inflation numbers and recent comments from Jerome Powell have led to the market pricing in a lot of interest rate cuts over the next 12 months. Because of that, the latest 6-month T-Bills closed at 3.64% yield. This means that if the upcoming 1-year T-Bills has an interest rate of around 3.6%ish (where they are trading on the open market now). They could be a pretty good buy actually – once you factor in the interest rate cuts in 2024/2025. The next 1-year T-Bills auction is coming up on 25 July. 3 key questions I wanted to discuss:

1. What is the estimated yield on the 1-year T-Bills on 25 July?
2. Which is a better buy – the 6-month or 1-year T-Bills? Compared vs Fixed Deposits or Money Market Funds?
3. What about for CPF-OA buyers?

And I will also take the chance to share whether I will be applying for the the 1-year T-Bills....