Where will Singapore Treasury bills go from here?
T-bills here generally track the path of US interest rates, but they have diverged this year. After a record yield of 4.4 per cent last year, an upward trend is unlikely
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SINGAPORE Treasury Bills (T-bills) have been a hot topic since interest rates began to rise in 2022. The Monetary Authority of Singapore (MAS) does not manage the monetary policy through interest rates. Hence, the interest rate environment in Singapore has mostly been dictated by the rate changes in the United States.
The US has led rate hikes since 2022. It was one of the first major economies to raise interest rates, and the current rate-hike cycle is among the most aggressive.
Favourable sentiment on Singapore T-bills rose significantly as their yields advanced considerably alongside the rise in the US Federal Funds rate. Yields on six-month T-bills hit a peak of 4.4 per cent in the auction in November 2022.
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