Singapore Treasury bills (T-bills)

[vsvs24]

how do u guys even see the rate? @maumu
cant even click on it? have to wait till end of auction?
BS22115F

28 Jul 2022

04 Aug 2022

10 Aug 2022

07 Feb 2023

6-month

BS22115F

SGXZ99167959

Upcoming

but dont be too disappted still better than FDs? but 10yrs?
i saw the 10yr sgs is 2.625% p.a.
your stated rate is for "Cut-off Yield 2.71% p.a" competitive only?



https://www.mas.gov.sg/bonds-and-bi...nds?issue_code=NX22100W&issue_date=2022-08-01

At the webpage, scroll down till you see Auction announcement. Click on the tab on it's right "Auction results". You will see cutoff yield 2.71% there and cutoff price.

The cutoff price is used to determine the cutoff yield of 2.71%. Difference of $100 and cutoff price is returned to your bank. Interest will be paid based on coupon 2.625% for 10 years. But if take in the amount you receive upfront, effective interest rate is 2.71%.

 

[dappermen]

Tks for explaining , vsvs!

dark mentioned a 2.93?

Where did he get that??

 

[Gattberserk]

If you are comparing it to FD it is technically safer, cause it is backed by government. But unlike FD where you can surrender early and get back money and just lose interest, you cannot surrender for this, you need to sell and might lose capital overall.

Almost 100% for non comp, unless all of a sudden demand surge like mad.

non comp gets priority allocation of up to 40%. Previously only ~5% utilised.

40% is like 1.8bil vs 700m for ssb

I have a question is comp and non comp?

Wat is the difference?

 

[vsvs24]

Tks for explaining , vsvs!

dark mentioned a 2.93?

Where did he get that??

2.93% is the cutoff yield for the 6 mth tbill that closed for application on 20 Jul.

https://www.mas.gov.sg/bonds-and-bi...ill?issue_code=BS22114E&issue_date=2022-07-26

 

[silverbomb]

I have a question is comp and non comp?

Wat is the difference?

Non-Competitive: You enter the bid and accepts that whatever % yield after the auction/bidding has closed, is accepted. You do not need to indicate any % prior to entering the bid.

Competitive: You enter an % prior to submitting the bid and this % is the lowest bid you will accept. Anything below this bid, MAS will not deduct the capital/investment amount you submitted. E.g. You key in 2.5% as your bid with $1000 invested. If the auction result is 2.4%, none of your $1000 will be deployed and will be returned to your bank account. If result is 2.6%, then $1000 will be accepted to buy the T-Bill issue for the period committed (6M/1Y/10Y)

Generally people go for non-competitive as long as they are aware of the current market situation and estimate yield they'll get based on recent results to gauge; unless you only want to commit to puchase that issue only if the % hits above the target % that you feel reasonable for you to commit/invest (competitive bid)

 

[vsvs24]

Non-Competitive: You enter the bid and accepts that whatever % yield after the auction/bidding has closed, is accepted. You do not need to indicate any % prior to entering the bid.

Competitive: You enter an % prior to submitting the bid and this % is the lowest bid you will accept. Anything below this bid, MAS will not deduct the capital/investment amount you submitted. E.g. You key in 2.5% as your bid with $1000 invested. If the auction result is 2.4%, none of your $1000 will be deployed and will be returned to your bank account. If result is 2.6%, then $1000 will be accepted to buy the T-Bill issue for the period committed (6M/1Y/10Y)

Generally people go for non-competitive as long as they are aware of the current market situation and estimate yield they'll get based on recent results to gauge; unless you only want to commit to puchase that issue only if the % hits above the target % that you feel reasonable for you to commit/invest (competitive bid)

After understanding how it works, I am more confident and tend to submit a non-competitive bid of a lower amount. And a few competitive bid scaling up the bid.

 

[reddevil0728]

I have a question is comp and non comp?

Wat is the difference?

Non-Competitive: You enter the bid and accepts that whatever % yield after the auction/bidding has closed, is accepted. You do not need to indicate any % prior to entering the bid.

Competitive: You enter an % prior to submitting the bid and this % is the lowest bid you will accept. Anything below this bid, MAS will not deduct the capital/investment amount you submitted. E.g. You key in 2.5% as your bid with $1000 invested. If the auction result is 2.4%, none of your $1000 will be deployed and will be returned to your bank account. If result is 2.6%, then $1000 will be accepted to buy the T-Bill issue for the period committed (6M/1Y/10Y)

Generally people go for non-competitive as long as they are aware of the current market situation and estimate yield they'll get based on recent results to gauge; unless you only want to commit to puchase that issue only if the % hits above the target % that you feel reasonable for you to commit/invest (competitive bid)

I would have just direct people to post 1/2 because I think important to teach people how to fish. But thanks for repeating for people.

 

[1l92041H]

great thread, bought some

if anyone got any experience of early redemption pls share process just in case

 

[dappermen]

2.93% is the cutoff yield for the 6 mth tbill that closed for application on 20 Jul.

https://www.mas.gov.sg/bonds-and-bi...ill?issue_code=BS22114E&issue_date=2022-07-26

for a 6mth to 1yr or even more ......... the effective rates are very attractive even if it is a 2.5%

https://www.mas.gov.sg/bonds-and-bills/treasury-bills-statistics
better than any FDs
somemore NO limitations at all ie Full allotmt...why those who wanna more SSB , dont get more of these? lazy to repeat it every half yr-1 hr? and the rate is definitely higher than the 1st yr of SSB#



and there are so many t bills keep coming up

Auction: BS22115F 6-Month T-bill (New)​

https://www.mas.gov.sg/bonds-and-bi...ill?issue_code=BS22115F&issue_date=2022-08-10The minimum bid amount for SGS bonds and T-bills is S$1,000 + in multiples of S$1,000.
Auction date04 Aug 2022
Issue date10 Aug 2022
Maturity date07 Feb 2023
Applications through these channels may close 1 to 2 business days before the auction. Individual investors should check with their banks on the exact cut-off time.




that is VERY clever loh:

After understanding how it works, I am more confident and tend to submit a non-competitive bid of a lower amount. And a few competitive bid scaling up the bid.

SSB -​

SBAUG22 GX22080V​

Year from issue date	1	2	3	4	5	6	7	8	9	10
Interest %	2.00#	2.86	3.07	3.09	3.16	3.18	3.18	3.18	3.18	3.29
Average return per year %*	2.00	2.42	2.63	2.74	2.82	2.88	2.92	2.95	2.97	3.00

 

[reddevil0728]

great thread, bought some

if anyone got any experience of early redemption pls share process just in case

If ppl share I’ll update. But if is the 6m one I think really not worth

 

[sohguanh]

great thread, bought some

if anyone got any experience of early redemption pls share process just in case

A lot of readers have asked this too in this thread and all waiting for someone that actually go through the process and share. I know SGS bond is listed in SGX so you can buy,sell but the bid,sell volume there is terrible you may not even get any buyers when you want to sell!

 

[1l92041H]

I think this would be a biggest disadvantage of T-bill vs FD and SSB then. Ppl need to be aware really cannot see the $ for the next 6/12 mths

If ppl share I’ll update. But if is the 6m one I think really not worth

A lot of readers have asked this too in this thread and all waiting for someone that actually go through the process and share. I know SGS bond is listed in SGX so you can buy,sell but the bid,sell volume there is terrible you may not even get any buyers when you want to sell!

 

[sohguanh]

I think this would be a biggest disadvantage of T-bill vs FD and SSB then. Ppl need to be aware really cannot see the $ for the next 6/12 mths

Agree. But the biggest advantage of T-bill is once auction results come out, you get your "interest" aka discount credit back to account already can start touching.

As for FD, dunno about others but I also tend not to withdraw early if not matured. Maybe that is my style.

 

[vsvs24]

I think this would be a biggest disadvantage of T-bill vs FD and SSB then. Ppl need to be aware really cannot see the $ for the next 6/12 mths

Tbills are still ok as they are short duration.

It is the SGS 5 yr or 10 yr that you don't see many people applying.

 

[maumu]

I think this would be a biggest disadvantage of T-bill vs FD and SSB then. Ppl need to be aware really cannot see the $ for the next 6/12 mths

it's just like buying FDs... how many people put in FDs but withdraw them before maturity? usually they put in because they already know won't see/touch the money till it matures... otherwise interest kena wiped out. not worth it.

use non-emergency funds for this.

 

[reddevil0728]

I think this would be a biggest disadvantage of T-bill vs FD and SSB then. Ppl need to be aware really cannot see the $ for the next 6/12 mths

Do ladder lor

 

[vsvs24]

for a 6mth to 1yr or even more ......... the effective rates are very attractive even if it is a 2.5%

https://www.mas.gov.sg/bonds-and-bills/treasury-bills-statistics
better than any FDs
somemore NO limitations at all ie Full allotmt...why those who wanna more SSB , dont get more of these? lazy to repeat it every half yr-1 hr? and the rate is definitely higher than the 1st yr of SSB#

Because rates won't be forever high. Eg if buy 1 year Tbill mature Aug 2023. We don't know the rate then. It might be lower than now.

SSB you lock in the good rates for 10 yrs and yet flexible to withdraw if you need the money unexpectedly.

Many people are buying both.
And some people like me are buying tbills using money that we previously keep in FD or savings account.

 

[dork32]

As for FD, dunno about others but I also tend not to withdraw early if not matured. Maybe that is my style.

for me, it is also in terms of money.

i cancel, i lose the interest. how much is lost?
I transfer to alternative investment, i win. Win how much?

Win more than lose, cancel. otherwise, hold fd till maturity.

 

[fr33d0m]

Below 2.9% for sure. LOL

 

[silverbomb]

A lot of readers have asked this too in this thread and all waiting for someone that actually go through the process and share. I know SGS bond is listed in SGX so you can buy,sell but the bid,sell volume there is terrible you may not even get any buyers when you want to sell!

we hope nobody has to go thru this selling process (bcos it means you urgently need the cash flow one way or another) but if there are ppl who went thru the process shares the selling process will be good to know.

for now, the money i've deployed to T-Bills are cash that I won't need for the next 1 year minimally and doing ladder style.