The results of the latest 6-month Singapore T-bill auction are in, and they have confirmed what many in the market suspected: volatility is pushing yields higher. With a cut-off yield of 1.46% at the March 26 auction, which represents quite a significant jump from the 1.37% seen just two weeks earlier, some may wonder whether it is time to take a closer look at T-bills again. At Smart Investor, we have always emphasized the importance of being able sleep well at night. And when the market feels bullish, it’s easier to play it safe, even if it means less income and no long-term growth.
What is the reason for the high yield of Singapore T-bills?
This sudden increase in T-bill yields did not happen in a vacuum. Currently we are seeing US government bond yields rising as global markets react to growth conflict in the middle east And low expectations from the Fed to cut interest rates…
