USD keep depreciating against SGD 🥲

[reddevil0728]

Actually, for me, the primary reason isn't even to keep USD, but to park some cash in DBS, but the SGD interest in DBS is just too low.

but isn't that a risky bet? if fx goes the wrong way. your might end up losing money just because you think that it is more worth while to get higher yield on a FCY

 

[redglue23]

DBS-Treasures offered a 3 Months USD Structured Deposit at 5.3X%, considering the 3M USD FD was at 5.13% & 3M USD FD was at 5.19%. UOB 6M USD FD was at ~5.4%. Not sure if I squeezed my DBS "Ah Beng" RM hard enough?

Any brothers can share here or over PM if there are other banks that can do a better deal than DBS for AUM>S$1MM equivalent?

 

[BBCWatcher]

DBS-Treasures offered a 3 Months USD Structured Deposit at 5.3X%, considering the 3M USD FD was at 5.13% & 3M USD FD was at 5.19%. UOB 6M USD FD was at ~5.4%. Not sure if I squeezed my DBS "Ah Beng" RM hard enough?

Any brothers can share here or over PM if there are other banks that can do a better deal than DBS for AUM>S$1MM equivalent?

I don't know why you'd ever do this when U.S. Treasury bills exist. Go contact any broker that can help you buy U.S. Treasury bills. Typical examples for residents of Singapore include Interactive Brokers and Firstrade Securities.

U.S. Treasuries are the world's safest vehicles for parking U.S. dollars. They are general debt obligations of the U.S. federal government and backed by its full faith and credit. They are U.S. income and estate tax free when held by non-U.S. persons as personal investments (not effectively connected to a U.S. trade or U.S. business). U.S. Treasuries have an active secondary market, the world's largest sovereign debt market in fact. Most brokers can help you buy U.S. Treasuries at both initial auction and on the secondary market, as you prefer. For initial auctions you can look at the list of upcoming auctions here....

....But why are you holding and parking U.S. dollars?

 

[milkfish]

DBS-Treasures offered a 3 Months USD Structured Deposit at 5.3X%, considering the 3M USD FD was at 5.13% & 3M USD FD was at 5.19%. UOB 6M USD FD was at ~5.4%. Not sure if I squeezed my DBS "Ah Beng" RM hard enough?

Any brothers can share here or over PM if there are other banks that can do a better deal than DBS for AUM>S$1MM equivalent?

Not good enough. USD FD 3mo and 6mo rates for DBS private bank customers are 5.3x% and 5.4x% respectively, no need to squeeze. Also, US Treasury is firmly 5.4-5.5% for such short duration, somemore no DBS counterparty risk.

DBS like to sell link this link that notes with lower yield than the underlying. I never understand why anyone would buy them for simple stuff that you can buy yourself.

 

[reddevil0728]

Not good enough. USD FD 3mo and 6mo rates for DBS private bank customers are 5.3x% and 5.4x% respectively, no need to squeeze. Also, US Treasury is firmly 5.4-5.5% for such short duration, somemore no DBS counterparty risk.

DBS like to sell link this link that notes with lower yield than the underlying. I never understand why anyone would buy them for simple stuff that you can buy yourself.

not simple for all ppl. there will be supply if there's demand

 

[redglue23]

Ok, please provide concrete examples and numbers for AUM S$1MM. Just PM or state here the name of the RM/broker that can purchase US-T bills, purchase on 29th Sep-29th Dec, with immediate interest accrual on 29th Sep, >5.35%

• Buy from Auction, can immediate settlement and interest accrual on the day of purchase?
• Buy from secondary, immediate settlement on the day of purchase but broker commission free ah?

 

[tangent314]

To purchase from auction you need to be a US person, which allows you to place a competitive or non-competitive bid at TreasuryDirect.

The T-Bill you are referring to is probably 912796ZN2 28/9-28/12.
I'm looking at the price on IBKR right now, Offer/Bid yield is 5.376%-5.481%. Commission is US$20 (0.2 bp) for US$1M

 

[BBCWatcher]

To purchase from auction you need to be a US person, which allows you to place a competitive or non-competitive bid at TreasuryDirect.

Brokers handling U.S. Treasuries typically can handle initial auction orders too. That part doesn’t change. TreasuryDirect is just another option for those who are eligible to use it.

As background, TreasuryDirect has no analog in Singapore. For U.S. persons (and possibly a few others) the U.S. Department of the Treasury (through its Bureau of the Public Debt, I believe) operates its own channel for direct public participation in auctions of U.S. Treasuries. U.S. persons are not obliged to use this channel (TreasuryDirect) specifically, but it’s a popular option. In Singapore we have what are called “primary dealers,” and the retail public places their orders through their channels. The U.S. Treasury also offers direct custody services for these bonds/notes/bills/securities. Here in Singapore we don’t have that either. The custody is via CDP or (for SRS and CPF) primary dealers. U.S. Treasuries still have primary dealers, of course.

The T-Bill you are referring to is probably 912796ZN2 28/9-28/12.
I'm looking at the price on IBKR right now, Offer/Bid yield is 5.376%-5.481%. Commission is US$20 (0.2 bp) for US$1M

Each individual U.S. Treasury issue has what’s called a “CUSIP,” a unique identifier similar to an ISIN. 912796ZN2 is an example of a CUSIP.

Chicago-based Firstrade Securities also offers brokerage services for U.S. Treasuries to residents of Singapore. They operate on what’s called a net yield basis, meaning that the price they quote you on a U.S. Treasury is the price you get, commission inclusive.

As an aside, I’d love to know why a resident of Singapore is holding US$1M+ and wanting to park that pile of U.S. dollars in an uninsured fixed deposit, uninsured structured deposit, or (better at least) a U.S. T-Bill. What’s the objective? I’m not aware of any 4 year undergraduate education at any U.S. university (for example) that costs anywhere near US$1M even at list price, even with rather lavish student housing assumptions.

 

[DevilPlate]

Why cannot hold 1M USD for time being.

Maybe he sold/inherited US properties/assets in USD and waiting for big crash in the stock market or buy some time to decide whats next to invest?

 

[BBCWatcher]

Why cannot hold 1M USD for time being.

You can do anything you want with US$1M+ as long as it's legal. Whether parking US$1M+ in uninsured fixed deposits, uninsured structured deposits, or (highest available safety) U.S. Treasuries makes much or any financial sense in the circumstances is a very separate question.

Maybe he sold/inherited US properties/assets in USD and waiting for big crash in the stock market or buy some time to decide whats next to invest?

Maybe, but now you're guessing. I'm just asking the question, and my question may or may not be answered.

 

[BBCWatcher]

As an aside, this thread's title is funny. Courtesy OandA.com here are the USD-SGD exchange rates ("US$1.00 buys...") on the date this thread was started and today:

January 14, 2023: 1.32130
October 3, 2023: 1.37096 (+3.76%)

 

[BBCWatcher]

Maybe he sold/inherited US properties/assets in USD and waiting for big crash in the stock market or buy some time to decide whats next to invest?

Another reason it'd be helpful to know "What's the goal?" is that (...since you brought it up...) an inherited U.S. property is U.S. estate taxable. In that event roughly US$346K of this US$1.00M will need to be paid to the U.S. Internal Revenue Service within 9 months of the owner's date of death. So a 12 month U.S. T-Bill or 12 month fixed deposit wouldn't be a good idea (one would think).

For example. Since you brought it up.

 

[reddevil0728]

Another reason it'd be helpful to know "What's the goal?" is that (...since you brought it up...) an inherited U.S. property is U.S. estate taxable. In that event roughly US$346K of this US$1.00M will need to be paid to the U.S. Internal Revenue Service within 9 months of the owner's date of death. So a 12 month U.S. T-Bill or 12 month fixed deposit wouldn't be a good idea (one would think).

For example. Since you brought it up.

Actually I thought it’s a qns about how to getting better yield.

how people want to use it in the end is a separate thing?

 

[redglue23]

To purchase from auction you need to be a US person, which allows you to place a competitive or non-competitive bid at TreasuryDirect.

The T-Bill you are referring to is probably 912796ZN2 28/9-28/12.
I'm looking at the price on IBKR right now, Offer/Bid yield is 5.376%-5.481%. Commission is US$20 (0.2 bp) for US$1M

OK, thanks, this is useful. Is there a landing page for US treasuries by tenor in IBRK? I checked IBRK Offer/Bid yield is 5.446%-5.485% via the CUSIP. Yes, thank you for confirming my suspicions that I had been sloppy with my USD.

How about TD Ameritrade? Cannot seem to locate 912796ZN2 on TDA?

For IBRK, why did I get this msg?

"BUY $750,000K US-T GOVT Dec28'23 912796ZN2 @ 98.72800" YOUR ORDER IS NOT ACCEPTED. IN ORDER TO OBTAIN THE DESIRED POSITION YOUR EQUITY WITH LOAN VALUE [845593.56 SGD] MUST EXCEED THE INITIAL MARGIN [10176592.14 SGD]

 

[reddevil0728]

OK, thanks, this is useful. Is there a landing page for US treasuries by tenor in IBRK? I checked IBRK Offer/Bid yield is 5.446%-5.485% via the CUSIP. Yes, thank you for confirming my suspicions that I had been sloppy with my USD.

You can filter just search us-t

How about TD Ameritrade? Cannot seem to locate 912796ZN2 on TDA?

TDA according to another thread a lot of ppl moving away from it because of some policy change?

 

[BBCWatcher]

How about TD Ameritrade? Cannot seem to locate 912796ZN2 on TDA?

I don't think TD Ameritrade offers their "bond window" to residents of Singapore. Firstrade Securities and Interactive Brokers do.

For IBRK, why did I get this msg?
"BUY $750,000K US-T GOVT Dec28'23 912796ZN2 @ 98.72800" YOUR ORDER IS NOT ACCEPTED. IN ORDER TO OBTAIN THE DESIRED POSITION YOUR EQUITY WITH LOAN VALUE [845593.56 SGD] MUST EXCEED THE INITIAL MARGIN [10176592.14 SGD]

Probably because it's exactly as described: you don't have enough settled U.S. dollar cash (and margin allowance, if you wish to tap it — there's a margin interest cost if you tap your margin lending facility*) yet. Interactive Brokers is currently willing to extend you the ability to purchase something worth up to S$845,593.56 (inclusive of estimated commissions). At current exchange rates that's about US$615,514. An order for a US$750,000 U.S. T-Bill is higher than US$615,514.

Did you recently transfer U.S. dollar cash into that account? Depending on how much cash that is, how it was transferred, from where it was transferred, how much the rest of your account is worth, and what other securities your account holds Interactive Brokers may be waiting for that recently transferred cash to "settle." If so, that'll take a couple trading days, usually.

* If you don't want even the possibility of borrowing from the broker then switch your account from a margin account to a cash basis account.

 

[tangent314]

For IBRK, why did I get this msg?

"BUY $750,000K US-T GOVT Dec28'23 912796ZN2 @ 98.72800" YOUR ORDER IS NOT ACCEPTED. IN ORDER TO OBTAIN THE DESIRED POSITION YOUR EQUITY WITH LOAN VALUE [845593.56 SGD] MUST EXCEED THE INITIAL MARGIN [10176592.14 SGD]

You are trying to buy US$750M... I think you mean to buy US$750K

US T-bills on IBKR has 1% margin requirement, so you need S$10.17M to purchase that amount of US T-bills

 

[artemov]

Trying to see see look look US Tbills using the IBKR Android app ... can't seem to find the bond scanner though ... anyone knows where is it on the app, or how to find the list of US Tbills?

 

[BBCWatcher]

You are trying to buy US$750M... I think you mean to buy US$750K

And that's also a problem.

 

[BBCWatcher]

Trying to see see look look US Tbills using the IBKR Android app ... can't seem to find the bond scanner though ... anyone knows where is it on the app, or how to find the list of US Tbills?

Their Android app might not offer their "bond window." Just try another user interface. If you want to use an Android device then try their Web Portal user interface instead (using an ordinary Web browser).