The Business Times
business-time-50
BRUNCH

Why you shouldn’t put all your money in T-bills and SSBs (answer: you won’t beat inflation)

google-preferred-sourceAdd BT as a preferred source
Tan Nai Lun

Tan Nai Lun

Published Fri, Jan 13, 2023 · 12:00 PM
    • While bond yields are up, investors should bear in mind that interest rates are rising because central banks worldwide are trying to tame inflation.
    • While bond yields are up, investors should bear in mind that interest rates are rising because central banks worldwide are trying to tame inflation. ILLUSTRATION: SIMON ANG, BT

    TREASURY bills (T-bills) and Singapore Savings Bonds (SSBs) have captivated retail investors in Singapore with their attractive yields.

    SSBs have been oversubscribed since the July tranche last year, while a T-bill auction in November attracted a record 92,000 bids worth a total of S$14.2 billion – causing the results of the auction to be delayed by over five hours. The amount applied for was 3.2 times the amount available.

    The excitement is natural given the rapid rise in yields for Singapore government-backed instruments over 2022. Six-month T-bills were paying less than 1 per cent at the start of 2022. By the end of the year, they were paying over 4 per cent. Yields were last above 4 per cent in 1989, according to data from the Monetary Authority of Singapore (MAS).

    BrunchSingapore Savings BondsBonds

    TRENDING NOW

    Singapore’s next chapter should not be framed as a choice between economic growth and social well-being. We need both.

    Singapore at 61: How we can ensure opportunity, security and ownership for the next generation

    Clockwise from top left: The founders of ImmunoQs, AI Seer and DancingMind. All three startups are based at JTC Corp’s LaunchPad @ one-north.

    With tech for fact-checking to cancer care, Singapore startups aim beyond home 

    The Vietnamese economy has long relied heavily on bank lending, straining commercial banks as they shoulder the bulk of the financing needed by companies and large infrastructure projects.

    Vietnam seeks US$76 billion a year from capital markets to ease reliance on banks

    Singapore consistently champions the open, rules-based order and the principle of Asean centrality that underpins regional and global stability.

    Why Asean matters more than ever to the UK and Singapore

    Latest T-bills Treasury Bills Results & Interest NewsLatest SSB Singapore Savings Bonds NewsLatest COE Certificate of Entitlement News
    Latest Johor-Singapore SEZ NewsLatest BTO Build To Order & Sales of Balance NewsLatest STI Straits Times Index NewsLatest SGX Dividends, Share Price NewsLatest Bonds Market NewsLatest Singapore Stocks To Buy NewsLatest Singapore Economy News
    View More