Singapore Treasury bills (T-bills)

[reddevil0728]

Below 2.9% for sure. LOL

In relation to?

 

[fr33d0m]

In relation to?

yield on 6-m T-Bill.

 

[reddevil0728]

yield on 6-m T-Bill.

When?

 

[Jorgensen]

Do ladder lor

How to do ladder?

 

[reddevil0728]

How to do ladder?

Break your money into parts. every 2 weeks buy. after 13 purchases, the 1st purchase will mature and u can roll.

in an increasing interest rate environment, u can higher and higher i/r lor

 

[cryn79]

I am not sure, am I doing a correct apple to apple comparison.
Currently seeing the US 2yr yield at 2.9716%, I have a hunch that the yield for BS22115F (Auction date : 4 Aug), could be between 2.93%-3%. I obviously hope it could be as high as possible.

 

[chopra]

Hmm. Then I don’t get what that poster said about efficient market making it difficult to arbitrage.
cause so long as the Tbill yield (which is unknown prior to auction hence the risk) is higher than ah long rate, then confirm can arbitrage.
so don’t really get the link

market is efficient. ie, everything from sor, sora, tbill, fixed dep, housing loan etc will take dressing from fed rate. if these products don’t take immediate dressing, speculators will arbitrage immediately to take advantage of it.

this is however, theoretical.



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[reddevil0728]

market is efficient. ie, everything from sor, sora, tbill, fixed dep, housing loan etc will take dressing from fed rate. if these products don’t take immediate dressing, speculators will arbitrage immediately to take advantage of it.

this is however, theoretical.



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but the duration would be different also

 

[jayou8]

I am not sure, am I doing a correct apple to apple comparison.
Currently seeing the US 2yr yield at 2.9716%, I have a hunch that the yield for BS22115F (Auction date : 4 Aug), could be between 2.93%-3%. I obviously hope it could be as high as possible.

UST 2yr was around 3.25% when BS22114E was auction with cut-off yield of 2.93%. Rates did come off abit

 

[Intel888]

Break your money into parts. every 2 weeks buy. after 13 purchases, the 1st purchase will mature and u can roll.

in an increasing interest rate environment, u can higher and higher i/r lor

Ladder is a good idea. And it works on the assumption that interest rate is going up in the near future.

The alternative is to dump all in now. Although it should be at a lower interest rate compared to the next issue, but it also matures earlier, so that it could be 'recycled' into another issue. Assumption is that the rate is good when it is time to 'recycle'.

I'm beginning to wonder when rates will come crashing down.
This party can't go on forever.

 

[reddevil0728]

Ladder is a good idea. And it works on the assumption that interest rate is going up in the near future.

The alternative is to dump all in now. Although it should be at a lower interest rate compared to the next issue, but it also matures earlier, so that it could be 'recycled' into another issue. Assumption is that the rate is good when it is time to 'recycle'.

I'm beginning to wonder when rates will come crashing down.
This party can't go on forever.

but assuming guidance is taken from Fed's action, they plan to increase till EOY and maybe beyond. so don't have to guess as much?

 

[fr33d0m]

When?

of course coming one. LOL.

 

[Intel888]

but assuming guidance is taken from Fed's action, they plan to increase till EOY and maybe beyond. so don't have to guess as much?

If the aim is to 'recycle', then can consider dumping in now.
This dump will mature in 6 months, just in time to dump again in early 2023, before rates crash.

Or is the dump too late already?

 

[reddevil0728]

of course coming one. LOL.

oh can explain why is it so when fed just announced an increasing of rate?

Also why is it funny ah?

 

[reddevil0728]

If the aim is to 'recycle', then can consider dumping in now.
This dump will mature in 6 months, just in time to dump again in early 2023, before rates crash.

Or is the dump too late already?

anything can happen from now till then. so thought doing a ladder might be better. smooth our your yield. less guessing

 

[fr33d0m]

oh can explain why is it so when fed just announced an increasing of rate?

Also why is it funny ah?

it is funny that people expect higher rate just because Fed raised the interest rate.

It is already priced in. The fed only raise 75bp, and set the expectation for the next rate decisions. the rate is almost certain from now on til March next year. so the yield went lower. It will yo-yo or possibly go lower around this rate for the next few auctions as MAS adjusts exchange rate.

 

[reddevil0728]

it is funny that people expect higher rate just because Fed raised the interest rate.

It is already priced in. The fed only raise 75bp, and set the expectation for the next rate decisions. so the yield went lower. It will yo-yo or possibly go lower around this rate for the next few auctions as MAS adjusts exchange rate.

i see ok. lets wait and see lor

 

[chopra]

it is funny that people expect higher rate just because Fed raised the interest rate.
It is already priced in. The fed only raise 75bp, and set the expectation for the next rate decisions. the rate is almost certain from now on til March next year. so the yield went lower. It will yo-yo or possibly go lower around this rate for the next few auctions as MAS adjusts exchange rate.

i dont think it will be too priced in. there should instead be some form of formulae that big brothers use to calculate the expected yield for 6mth tbill based on fed real rate.



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[chopra]

i see ok. lets wait and see lor

ya, wait n see. regardless, it is higher than cpf oa n im so happy
bros, r u all trying to invest cpf oa in this 6 or 1 yr tbill thingy too?


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[reddevil0728]

ya, wait n see. regardless, it is higher than cpf oa n im so happy
bros, r u all trying to invest cpf oa in this 6 or 1 yr tbill thingy too?


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quite mafan leh.