Thursday, December 1, 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 persons are simply behaving like determined folks.

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

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




It might be massively disappointing if the yield needs to 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 sincere, I might be fairly pleased 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 dissatisfied.





So, what is the outcome?

Minimize-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 recently.

As if Mr. Market was anticipating the yield to be slightly 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 persist with mounted deposits?

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

Larger transparency.

Zero suspense.

Higher for my weak coronary heart.

Nevertheless, if mounted deposit promotional rates of interest change into much less attention-grabbing too, then, I might attempt to get some T-bills once more subsequent month.

Associated submit:
Rising passive revenue.






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