The cutoff yield for 6-Month Singapore Treasury Bills (T Bills) BS24121A is 2.99% per annum. The cutoff yield for T Bills has been trending downwards since the Fed cut interest rates by 50 bps. The returns offer by similar financial products such as Singapore Savings Bonds and Bank Fixed Deposits were not spared as well. However, it is still possible to find investments with returns slightly above 3.00% per annum if you are lucky.
As you observed from the above chart, Singapore Treasury Bills (T Bills) BS24120V offered a cutoff yield of 3.06% per annum. However, the 12-month issue of T Bill (BY24103N) offered a mere cutoff yield of only 2.71% per annum. In other words, we expect the cut-off yield for Singapore T Bills in upcoming months to be lumpy. The cutoff yield for future issue of T Bills may hover slightly above or below 3.00% per annum.
What are Singapore Treasury Bills?
For investors who still does not know what Singapore Treasury Bills are, T 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 Singapore T-Bill auction 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
At this point of writing, there are only 5 issues of 6-Months T-Bills left for auction in 2024. There are no more 12-Months T-Bills left for auction.
Singapore Treasury Bills (T-Bills) versus Fixed Deposits
In October, DBS Bank offered the highest interest rate in town at 3.20% p.a. for deposits between S$1,000 to $$19,999. In fact, I did a Fixed Deposit placement with DBS Bank using the money that was return upon maturity of my previous purchase of T-Bill.
If you compare T Bill BS24121A return at 2.99% per annum versus DBS Fixed Deposit of 3.20% per annum, it is a no brainer comparison. I will go for DBS 12 months Fixed Deposit at 3.20% per annum.
Singapore Savings Bonds (SSB) versus Singapore Treasury Bills (T-Bills)
If you want to compare the returns between Singapore Savings Bonds and Singapore T Bills, the interest rate (cut of yield) by Singapore T Bills had always been higher. That is also the reason why investors have been telling me why not put your money into Singapore T Bills instead of Singapore Savings Bonds.
The effective return of the latest issue of Singapore Savings Bond (SBNOV24 GX24110N) is only 2.56% if you held it for 10 years. If you are going to just hold it for 1 year, the return is 2.25% per annum.
The latest 6-Month Singapore Treasury Bills (T Bills) BS24121A is 2.99% per annum. I believe anyone can do your maths.
Having said that, Singapore Savings Bond still have its benefits. That is, it allows you to lock in the effective interest rates for a longer period of 10 years. And that is why I purchased Singapore Savings Bonds when the effective interest rates were the highest few months ago.
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.
Where is the Best Place to Park Your Money?
Generally, the cut of yield for Singapore Treasury Bills (T Bills) has always been higher than Fixed Deposits and Singapore Savings Bond. I foresee that the best place to park your extra money would still be in Singapore Treasury Bills (T Bills).
Once in a while, a gem like DBS Fixed Deposit at 3.20% per annum will appear. Thus, we need to do our homework by comparing the returns before placing our money in any of the above financial products.
Where do you think is the best place to park your money?