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