Singapore Treasury bills (T-bills)

[pohw0008]

With the banks' latest December round of higher deposit, looks like upcoming T-bills will be mainly CPF/SRS investors and very soon, T-bills will just mainly be an internal transfer of CPF fund to MAS per my earlier prediction.

But i thought got ppl say the amount from cpf actually is quite low compared to cash/srs.. it probably don't have too big impact on the yield..

 

[F1ngolf2012]

But i thought got ppl say the amount from cpf actually is quite low compared to cash/srs.. it probably don't have too big impact on the yield..

Really? There are also many who said CPF money is moving the needle. I would encourage you to do your own critical analysis and not based only on what people say.

 

[888888888888]

the 6 mths gov bonds are down, whilst the one-mth rocketed up to highs. don't think the distance can be covered as fast, so shall not be applying.

 

[F1ngolf2012]

CPF and SRS have less alternative.

The pull down rate may get worse if those who usually bid higher in cash exit tbill.

The widening yield disparity between MAS Bill (institutional) and T-bills is increasing pointing to CPF/SRS as the curve ball. Don't need a genius to come to this conclusion. I will halt my cash T-bills journey for now but may press on with CFP/SRS fund.

 

[pohw0008]

Can don't anyhow say thing or hantam? CPF has higher cost compare to Cash going for T-bills.

Nov 10 Auction, only 3,000 used cpf amounting to about 450,000,000 out of 12,400,000,0000 total bids.

Total OA balance Sep 2022 $182,712,800,000 and SA $135,526,500,000 = $318,239,300,000
Commercial banks' deposits by non-bank customers Sep 2022 $787,173,100,000

10 Nov Auction $4.5b allotment size
Amount applied $14.2b
NC amount $1.8 successful and $1.8 not successful due to over subscription
Comp amount $2.7b successful and $7.9b not successful due higher than COY of 4%??? Surely the unsuccessful bids have more weightage on the COY?
COY of 4% cannot be due to low bid. Most of the $2.7b bids has to be above 3.5% as reflected by the median yield. The average yield does not give a good indication.

Really? There are also many who said CPF money is moving the needle. I would encourage you to do your own critical analysis and not based only on what people say.

https://www.channelnewsasia.com/singapore/invest-t-bills-treasury-bills-cpf-ordinary-account-3040226
450m invested in Oct tbills from cpf.. the amount is very little as compared.. however no data for Nov which could increase by a big margin..

 

[F1ngolf2012]

What a screwed up bank is DBS? They sent me this email almost after 3 months.....

******************************

Dear Mr XXXXXXXXXXX,

Singapore Government Bond/T-Bill dated 27th August 2022.

With regards to your Singapore Government Bond/T-Bill application on 27th August 2022 using SRS funds, there was an error whereby securities were allotted to you even though your competitive bid of 3% is higher than MAS cut off yield of 2.99%. As such, your Government Bond/T-Bill will mature on 7th March 2023.

We are very sorry for this and would like to offer you S$50 as a token of apology. The amount will be credited to your deposit account ending with XXXX by mid of December.

If you have any other queries, feel free to reach out to me or call our DBS Hotline.

*******************************

Not sure about you. To me, the reply sounded very high handed which is not a surprise coming from DBS. Offer $50 for the stuff up and did not even ask if this offer is acceptable to you. Pretty sure it will cost them much much more than $50 through the Fidrec route.

 

[lzydata]

Not sure about you. To me, the reply sounded very high handed which is not a surprise coming from DBS. Offer $50 for the stuff up and did not even ask if this offer is acceptable to you. Pretty sure it will cost them much much more than $50 through the Fidrec route.

But I think in this case, he got awarded the T-bill which he should not have gotten because his bid was just a bit higher than the cut-off yield, so in a sense he did benefit from the bank's error. Even without considering the $50. If he was supposed to get the T-bill and didn't, then there would be a better case to pursue Fidrec.

 

[demoforce1]

But I think in this case, he got awarded the T-bill which he should not have gotten because his bid was just a bit higher than the cut-off yield, so in a case he did benefit from the bank's error. Even without considering the $50. If he was supposed to get the T-bill and didn't, then there would be a better case to pursue Fidrec.

will not do that, why trouble ourselves and wasting time with Fidrec since not loss anything

 

[vsvs24]

Give this kind of advice. No wonder tbill rates going down !

A good rule of thumb to ensure you get what you want and accept whatever the cut-off yield bid 50% of the last cut-off yield. In this case, you can bid 1.95%. Whether the final cut-off yield is at 2% to 4.3%, your 1.95% bid will help secure the full allocation you need.



https://investmentmoats.com/uncateg...ber_2022_investment_moats&utm_term=2022-12-02

 

[m0n0n0ke]

Give this kind of advice. No wonder tbill rates going down !

A good rule of thumb to ensure you get what you want and accept whatever the cut-off yield bid 50% of the last cut-off yield. In this case, you can bid 1.95%. Whether the final cut-off yield is at 2% to 4.3%, your 1.95% bid will help secure the full allocation you need.



https://investmentmoats.com/uncateg...ber_2022_investment_moats&utm_term=2022-12-02

Coffee shops uncles told me that too
Just bid 2.6 and sure get more....lol
Many pple agree with him

 

[pohw0008]

Coffee shops uncles told me that too
Just bid 2.6 and sure get more....lol
Many pple agree with him

Waiting for tbills to become 2.6%..

 

[Nanonited]

If the tbill mature on 30 Jan, will it be credited immediately or will have some lag? afraid that may end up CPF credit in Feb then will lose additional month interest?

 

[andyhtc]

Waiting for tbills to become 2.6%..

I think it could go down to 3.5% on average in 2023.

 

[royalmix]

If the tbill mature on 30 Jan, will it be credited immediately or will have some lag? afraid that may end up CPF credit in Feb then will lose additional month interest?

you are at the mercy of MAS and your Bank. I recently tried transferring from bank to CPF, credited next day, lucky!

 

[konan~]

you are at the mercy of MAS and your Bank. I recently tried transferring from bank to CPF, credited next day, lucky!

Credited one working day is fast. What bank is that?

 

[royalmix]

Credited one working day is fast. What bank is that?

DBS refunded fee 37c, yesterday I check, refund again 13c dunno what?

 

[henrylbh]

If the tbill mature on 30 Jan, will it be credited immediately or will have some lag? afraid that may end up CPF credit in Feb then will lose additional month interest?

Likely end up in CPF in Feb. MAS would or should credit the Agent Bank on 30 Jan. The Agent Bank may need to process and credit your CPFIA on 31 Jan. Then you immediately act to transfer from CPFIA to CPF. Then CPF may credit your account on 1 Feb, if you are unlucky. If using CPF, better to avoid such tight dates.

 

[Nanonited]

Likely end up in CPF in Feb. MAS would or should credit the Agent Bank on 30 Jan. The Agent Bank may need to process and credit your CPFIA on 31 Jan. Then you immediately act to transfer from CPFIA to CPF. Then CPF may credit your account on 1 Feb, if you are unlucky. If using CPF, better to avoid such tight dates.

oh thanks.. because thinking of the 1 mth tbill.. if like that then it become similar to 2 6 mth tbills since you will lose 2 months of interest also

 

[chijmer]

If you just leave the matured t bill funds in the banks cpfia account, it will only auto go back to cpf after two months?

 

[henrylbh]

Credited one working day is fast. What bank is that?

One working day is quite normal from my experience in transferring from bank to CPF via atm and paynow.