Interest rates are shooting up in Singapore.
The latest MAS 12-week bills for institutions closed at a yield of a whopping
4.35%.
What are T- bills?
T-bills are short-term Singapore Government Securities
missed at a discount to their face value. Investors receive the full face
value at maturity. The bills are AAA-rated, and returns are tax-exempt. They
are considered to be the safest asset class for cash. You can also used CPF to invest. The minimum sum is $1000.
In layman’s terms, you lend money to Govt, and they pay you back the principal with interest. So if you lend them $98, they will pay you $100 by the end of the term.
Find out how you can invest in T Bills here.
For retail investors, you can invest in 6-month or 1-year T bills. 4 weeks and
12 weeks of T bills are only open to institutions. You can assess the rates for 6 and 12 months based on their trend.
12 Weeks T Bills Trend vs 6 Months T Bills Trend
 |
| 12 Weeks T Bills |
Past Results
|
Date |
12 Weeks T Bills |
6 Months T Bills |
|
23 Sep |
3.32% |
|
|
29 Sep |
|
3.32% |
|
11 Oct |
3.8% |
|
|
13 Oct |
|
3.77% |
As you can see, the 6 months yield follows closely with the 4 weeks yield. If the yield is at 4.35% for 4 weeks, expect a yield above 4% for this month’s auction on 27 Oct 2022.
The upcoming 6-month T bills will be auctioned on 27 Oct 2022. Some banks will close the application 1-2 days before the auction date. This means you may still have a chance to get them if you opt for a cash purchase.
Will you bid for it?
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