6 Months T Bills for August drops to 3.4% : Lowest for 2024

6 Months T Bills fall below 3.6% for the first time in 2024.

For Aug 1 6, months T Bills auction, the yield closed at  a year low of 3.4%

The Median yield bid was 3.3%, and the average yield was 2.85%. Those who placed a competitive bid of 3.4% were allocated only around 43%, while non-competitive bids were allocated 100%.

At 3.4%, this is similar to the highest FD rates for the month of August. In recent years, T Bills have usually provided higher returns than bank rates; with this result, it would have appeared that the attractiveness of T Bills has waned.

Would this result be the start of lower T Bill rates going forward? With the anticipation of lower interest rates in US, we would not be surprised if this is so. This would also coincide with the strength of SGD as it has also weaken against most currencies over the past weeks.,

Would you still place your funds in T Bills?