Source :
Apple Intelligence :
• Yield Comparison: The 1-year T-bill yield (1.76%) is similar to the 6-month T-bill yield.
• Re-investment Risk: 1-year T-bill investors may face lower re-investment risks compared to 6-month T-bill investors.
• Fixed Deposit Rates: Fixed deposit rates in Singapore have declined in recent months.
• Singapore Bond Yield Trend: Singapore 10-year government bond yield and 1-year T-bill yield have declined in recent months.
• Reasons for Decline: Market expectations of US interest rate cuts and strong demand for Singapore government bonds due to economic uncertainty.
• Investment Consideration: Investing in two consecutive 6-month T-bills could be an alternative to a 1-year T-bill, but potential reinvestment risk exists if yields fall further.
• Current Yield Comparison: The 1-year Singapore T-bill yield (1.76%) is close to the 6-month T-bill auction yield (1.79%) and below the breakeven yield for CPF OA applications.
• Interest Rate Expectation: Markets anticipate the first U.S. interest rate cut in September 2025, potentially leading to lower yields on shorter-term T-bills.
• Investment Decision Considerations: Consider reinvestment risk, potential for lower yields, and economic uncertainty (e.g., tariffs and inflation) when deciding between a 1-year or 6-month T-bill.
• Fixed Deposit Rate: 2.45% for deposits below S$20,000 and 1.65% p.a. for larger deposits.
• 1-Year T-Bill Yield: 1.76%, slightly lower than the 6-month T-bill yield but offers certainty compared to reinvesting.
• Singapore Savings Bonds (SSB): Offers a 1-year return of 1.82%, a 10-year average annual return of 2.29%, and flexibility to redeem before maturity.
• T-bill Auction Date: The 1-year Singapore T-bill auction will be held on Thursday 24 July 2025.
• Application Deadline: Cash applications close at 9pm on 23 July 2025, while CPF-OA applications close 1-2 business days before the auction date.
