Singapore Treasury bills (T-bills)

[maumu]

He paid an extra 486.3. He will get back 1.00% or 300 on 1 Sept. So net he paid extra 186.30. This to use your words “eats into” his 3.0% coupon over 26 months for a clean cut off yield of 2.70% pa.

thanks for the knowledge sharing...

actually I think at the end of the day, all it matters is the 2.7% effective yield bah. MAS won't be making mistakes in their calculations so just trust they will do the necessary (deductions, refunds, coupons, etc.) and just sleep easy understanding the breakdown of the amounts can be overwhelming for normal folks.

but good to learn!

 

[maumu]

Unfortunately, the big 3 locals rely on depositors’ inertia. Further, the vast majority of depositors are either unaware of SGS bills and bonds or are intimidated by their perceived complexity. However, as @reddevil0728 mentioned, they are increasingly aware of SSBs and have begun piling into it but allocation is quantity restricted and cannot meet the demand.

I think UOB's 15-mth 2% FD is a positive step forward... hope to see more local banks following/raising the bar.

that said, it's probably time to dump the UOB One, Multiplier, 360, etc. wasting time locking up funds to earn just 1% to 1.2% for the average person and having to satisfy multiple conditions.

 

[reddevil0728]

I think UOB's 15-mth 2% FD is a positive step forward... hope to see more local banks following/raising the bar.

that said, it's probably time to dump the UOB One, Multiplier, 360, etc. wasting time locking up funds to earn just 1% to 1.2% for the average person and having to satisfy multiple conditions.

UOB One, Multiplier, 360, such accounts have their place in a person's finances. one should treat them like your "petty cash" while earning "decent" interest.

 

[fr33d0m]

thanks for the knowledge sharing...

actually I think at the end of the day, all it matters is the 2.7% effective yield bah. MAS won't be making mistakes in their calculations so just trust they will do the necessary (deductions, refunds, coupons, etc.) and just sleep easy understanding the breakdown of the amounts can be overwhelming for normal folks.

but good to learn!

2.7% is yield to maturity. it is lower if the investors don't hold to maturity.

 

[maumu]

UOB One, Multiplier, 360, such accounts have their place in a person's finances. one should treat them like your "petty cash" while earning "decent" interest.

I can think of better places like HSBC EGA / Singlife / Vivid to keep my petty cash actually. Relatively fuss-free without the hassle of multiple conditions.

 

[chopra]

So ok Tbill competitive bid sets the cut-off yield for the discount you get off face value.
Sgs bond (new) competitive bid sets the coupon rate
sgs bond (reopen) competitive bid sets the amount you are paying for the Face value. And coupon rate is already previously fixed

makes lots of sense. just try minimum for each to experience maybe?



Read HWZ Forum Rules!

 

[reddevil0728]

I can think of better places like HSBC EGA / Singlife / Vivid to keep my petty cash actually. Relatively fuss-free without the hassle of multiple conditions.

Well, i think lets not conflat the purposes of those account.

Can you paynow people using all those? Can you transfer here and there without an intermediary using all those?

 

[reddevil0728]

makes lots of sense. just try minimum for each to experience maybe?



Read HWZ Forum Rules!

If you desire?

 

[chopra]

If you desire?

yep yep. haha. also lazy n waiting for ppl to plot all these to see how the yield curve looks like :x :x


Read HWZ Forum Rules!

 

[demoforce1]

makes lots of sense. just try minimum for each to experience maybe?



Read HWZ Forum Rules!

yes, i did the same, haha

 

[stephenbishop]

I think UOB's 15-mth 2% FD is a positive step forward... hope to see more local banks following/raising the bar.

Agreed but the big 3 locals need to scrap all this nonsense about so called “fresh funds”.

 

[zer0ne]

Cut off yield of 2.7% is almost 40 bps below corresponding UST of similar tenor.

Early of the month till mid still can see above 3% but now 1 and 2 year drop below 3%. Wonder how the coming 1 year Tbill going be.

 

[stephenbishop]

Early of the month till mid still can see above 3% but now 1 and 2 year drop below 3%. Wonder how the coming 1 year Tbill going be.

2 year ust was 3.11% yesterday close.

 

[zer0ne]

2 year ust was 3.11% yesterday close.

Still contemplating whether to lock in some fund for 1 year or just stick to 6 months.

 

[Kojo0403]

hi, can i check the cut-off yield will be the interest we will be getting after the 6 months? i see there is still the median yield and average yield.

do we need to be concern of the cut-off/median/average price?

just need to choose between competitive bid or non competitive bid.

if you are comfortable with where the market will eventually settle at, go with non-competitive. every buyer will end up with the cut off yield subject to allocation.

if you have a min bid in mind, maybe at least the interest rate that you are currently getting else where, can submit a competitive bid, which is the lowest yield that you are willing to accept.

 

[fr33d0m]

Agreed but the big 3 locals need to scrap all this nonsense about so called “fresh funds”.

Only “fresh funds” matters. Or only money from other banks are useful to the bank.

 

[HelIoo]

For t bill, if i set competitive bid of 2% but end up is 2.x%, will i still get it?

if yes, i will get it at 2% or 2.x% ?

thanks

 

[reddevil0728]

2 year ust was 3.11% yesterday close.

Still contemplating whether to lock in some fund for 1 year or just stick to 6 months.

How to invest in UST?

 

[reddevil0728]

Agreed but the big 3 locals need to scrap all this nonsense about so called “fresh funds”.

But just need to move it around will become fresh funds right?

 

[reddevil0728]

For t bill, if i set competitive bid of 2% but end up is 2.x%, will i still get it?

if yes, i will get it at 2% or 2.x% ?

thanks

Yes. The latter