WHEN it comes to fixed income assets, the first thing that comes to mind among the majority of investors would likely be Singapore treasury bills.
Last year, the popularity of Singapore T-bills rose alongside rising interest rates. The T-bills hit a peak cut-off yield of 4.4 per cent in late-2022 and have drawn a frenzied crowd of interest since then.
But coming into 2023, we started to see a divergence between the US federal funds rate and Singapore T-bill yields. Even as the Federal Reserve continued to increase the fed funds rate in the first half of 2023, yields on Singapore T-bills had inversely been gradually coming down.
We see this happening despite yields on the US Treasury rising significantly...
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