T-bill yield falls further to 2.56% as demand stays high

What happened?

Like some investors in the Beansprout Telegram community, I was surprised by the result of the latest T-bill auction. The cut off yield for the 6-month Singapore T-bill (BS25105T) auction on 13 March declined further to 2.56% from 2.75% in the previous auction.  This would represent the lowest yield on the 6-month Singapore T-bill since June 2022.  In this post, I will look at what is driving the sharp fall in the T-bill yield, as well as some alternatives to consider to earn a higher interest rate.  Source: MAS

What we learnt from the latest 6-month Singapore T-bill

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