The cutoff yield for 6-Month Singapore Treasury Bill (T-bill) BS24118Z is 3.10% per annum. As you can see from the above chart, the yield for T-bill is trending downwards. This is expected given the expectation of a Fed rate cut in September. Why will Federal interest rates affect the yield of Singapore Treasury Bill? I will share my view at the end of this post.
Similar to Singapore Savings Bonds, Singapore Treasury Bills (T-bills) are considered low risk in nature. If you invest S$10,000 in the 6-month T-bill BS24118Z, the interest you will earn is S$154 ($10,000 x 3.10% x 182/365 days) when it matures on 18th March 2025.
What are Singapore Treasury Bills?
Singapore Treasury Bills are short-term debt instruments issued by the Singapore government to raise funds for its financing needs. These bills are typically sold at a discount from their face value and mature in 3, 6, or 12 months. They are considered a safe investment as they are backed by the Singapore government’s creditworthiness.
Investors can purchase these bills directly from the Singapore government or through designated financial institutions. Treasury Bills are often used by investors as a low-risk, liquid investment option with a fixed return.
The Announcement Date and Auction Date of Singapore Treasury Bills can be found at Monetary Authority of Singapore (MAS) website under Auctions and Issuance Calendar. For convenience, you can also download a copy to keep on your computer’s desktop.
Singapore T-Bills Calendar
For convenience, I am sharing the Singapore Treasury Bills (T-Bills) Auction and Issuance Calendar here. If you need the Treasury Bill results such as the status of each issuance, please refer to Treasury Bills at MAS website – Auctions and Issuance Calendar.
6-Months T-Bills Calendar
1-year T-Bills Calendar
Tracking of Singapore Savings Bonds (SSB) and Treasury Bills (T-Bills) All in One Place
Stocks Café is probably the only software that I know which allows you to track your purchased Singapore Savings Bonds and Treasury Bills (T-Bills) all in one place together with your stock investments. This makes it easy to track your total net investments.
Stocks Café allows you to create portfolios. You can use portfolio to different your investments. For example, I created three portfolios in Stocks Café, namely Stocks, Singapore Savings Bonds and Treasury Bills. This allow me to categorize how much I allocate for each investment.
Why will Federal Reserve interest rates affect the yield of Singapore Treasury Bills?
Federal interest rates will affect the yield of Singapore Treasury Bills for several reasons. Federal Reserve rate cuts can have a significant impact on Singapore’s treasury bill yield, causing it to decrease.
As the Federal Reserve lowers interest rates, investors are drawn to higher-yielding securities in other countries, putting downward pressure on yields for Singapore’s treasury bills. This can have both positive and negative effects on the economy, as it may lower borrowing costs but also reduce returns for investors.
Monitoring these trends and understanding the implications can help individuals and businesses make informed financial decisions in response to changing market conditions.