T-bill yield dips to 1.37%. What’s driving the decline?

What happened?

The Singapore T-bill yield has fallen once again.  In the auction on 6 November, the cut off yield for the 6-month Singapore T-bill (BS25122A) declined to 1.37% from 1.41% n the previous auction. This follows the interest rate cut by the US Federal Reserve last week. With the recent decline in interest rates on savings accounts and fixed deposits, I have seen more discussion in the Beansprout community about the Singapore T-bill. In this article, I’ll look at what is driving the fall in T-bill yield, as well as how it compares to the best fixed deposit rates as a place to park your spare cash.  Source: MAS  

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