Sunday, December 4, 2022
HomePassive Income6 months T-bill public sale disappointing. My view.

6 months T-bill public sale disappointing. My view.


In response to the decrease than anticipated 4% p.a. yield within the 6 months T-bill public sale which occurred within the first half of this month in November, I expressed my disappointment.

I additionally expressed my disgust however possibly that was a bit an excessive amount of as determined individuals are simply behaving like determined folks.

See:
4% yield T-bill 3.2x oversubscribed.

In that weblog, I additionally questioned if the following T-bill public sale would see a decrease yield with large oversubscription anticipated as soon as once more?




It will be massively disappointing if the yield must be even decrease than the promotional mounted deposit rates of interest supplied by the banks for a 6 or 12 months tenor.

If I’m not mistaken, UOB supplied 3.85% p.a. for a 6 months tenor mounted deposit whereas DBS supplied 3.8% p.a. for a 5 months tenor mounted deposit just lately.

Anyway, I made a decision to go forward and provides it a go.




Crossing fingers that we cannot get too many low ballers dragging down the yield.

To be trustworthy, I’d be fairly blissful if the cut-off yield is 4% p.a. once more.

Setting the bar fairly low given the place promotional rates of interest on mounted deposits are at.

Not setting excessive expectations means a decrease probability of being disenchanted.





So, what is the consequence?

Lower-off yield for the most recent 6 months T-bill public sale:

Solely 3.9%!

That is solely barely higher than the very best mounted deposit promotional rates of interest we have now seen currently.

As if Mr. Market was anticipating the yield to be quite uninteresting this time, this T-bill public sale was “solely” 2.48x oversubscribed!


Now, do I apply for extra T-bills in December or simply stick to mounted deposits?

I’m leaning in the direction of mounted deposits if the banks’ promotional rates of interest stay comparatively excessive.

Better transparency.

Zero suspense.

Higher for my weak coronary heart.

Nevertheless, if mounted deposit promotional rates of interest develop into much less fascinating too, then, I may attempt to get some T-bills once more subsequent month.

Associated publish:
Rising passive revenue.






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