Singapore T-Bills for October 2022

 

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MAS Bill Auction Result is out:

12 weeks(3months) cut off yield is at 3.8%

4 weeks cut off yield is at 3.44%

This means that the upcoming 6months Tbill and 12months Tbill issue will likely be close to 3.8%?

Do note that last day for application for these two tranches will be today before 9pm. The total tranche offered for the upcoming 6mths Tbill(BS22120E) will also be upsized to 4.5bil, 500mil more than the previous issue. This means it will likely be full allocation again.

Do note that T-bill and SSB both have their functions. If you wish to lock in the current good rate for 10 years, then SSB is a good choice, it can act as a savings account too due to its semi liquid nature, ie you can redeem at the start of every month with prorated interest. But the allocation is limited and its cap at 200k per person.

T-bill is more illiquid, be prepared to lock your funds up for 6months, the benefit is that you will get the highest rate among all fix deposit and ssb in Singapore and you get to front load your interest, ie receive your full interest upon allocation. The risk to reward is pretty awesome, you get the highest available yield in the current market and yet they(t-bills) are backed by a AAA government, even safer than the fix deposits issued by our local banks which offer inferior rates for the same duration.