I just check the US 6 month treasury bill rate then just hentam one figure i think is nice.

https://ycharts.com/indicators/6_month_treasury_bill_rate

This post has been edited by ikanbilis: Nov 8 2022, 10:40 AM

Seriously, that's how you bid for something in an auction? ...

Ok lah, but I think 4.4% looks more reasonable. 20bp behind current yield, similar to past issue. We will see today's results soon.

Yes i also think most probably 4.4% will also get it. I just want to bid lower.

4-week 3.8% cut-off, 12-week 4.6% cut-off.

It is interesting to note 12-week median is 4.33% p.a. while average is 3.85%. So 50% of institutions bid between 4.33% and 4.6% for a 3-month bill.

Source:

4-week: https://www.mas.gov.sg/bonds-and-bills/auct...date=2022-11-11

12-week: https://www.mas.gov.sg/bonds-and-bills/auct...date=2022-11-11

Tomorrow gonna bid 4.7%!

bros,... if you are bidding for 4.4%, why not you buy : FPTREA 4.49%270916XB# ?

The above is now giving out more than 4.49% yield since the price is below the par value of $1.00 now.

With the Feds soon to pivot,... or least pause,... the price won't drop much anymore.

One is issued by Sg Gov another by private company. If both about same yield which one would you choose?

ikanbilis You may want to put ILoveSSB's link on the first page of the thread for ease of reference.

https://www.ilovessb.com/

I think this is an important "service" for SSB subscribers.

If truly same yield, then obviously, the SG Govt's one.

But I would not under-rate Frasers' credit rating here. And secondly, Frasers offers a slightly higher effective rate now since the bond price is below $1.00,...

The Frasers Green Bond is 'continuous' for the next few years and will not leave me exposed with money in my hands after the next 6 mths, unlike the T-Bill which will return my money in 6-mths time.

It all depends on individual risk appetite. When i was younger, i have no problem investing 80% of my assets in shares, futures, unit trust and private bonds.

For my age now i am so risk averse that i would only invest in government bonds, FDs and ASNB fixed price fund.

Just be cautious of any private bonds. For reading pleasure only

https://www.dividendtitan.com/frasers-prope...-buying-at-4-49

https://www.dividendtitan.com/frasers-property-green-bonds/



This post has been edited by ikanbilis: Nov 8 2022, 03:21 PM

Yes,... to diversify your risks among bonds, you can actually buy into a bond fund. Bond funds was one of my first instruments when I first started investing,....

Very optimistic even higher than MAS t-bill 4.6%. I will bid lower maybe 4.5%

lol still reasonable.

I was looking at 3 month SG in comparison with 3 month US rates. The cut-off for SG side was 4.4, but US only side only 4.2%, so I suspect the SG rates may be better than US side.

That would also possibly mean SGD may not appreciate that strongly against USD in near term or may have mild depreciation since the SG rates are higher than US rates.

No bro,..................

Look at the USDSGD Chart in Yahoo Finance,............... the SGD has been APPRECIATING vs the USD. The SGD is getting stronger and stronger in the past few days. The SGD might end up as the best performing currency in the near term,...

I ain't a chartist. You can consult dwRK for chart matters.

But I am aware of a macroeconomic principle known as "interest rate parity". There are others like PPP (purchasing power parity) and IFE (international fisher effect) but IRP has been shown to be true empirically, allowing for some trading costs and other opportunity costs.

http://mays.tamu.edu/center-for-internatio...Chapter-008.pdf



You can check the USD/SGD forward rate here: https://www.investing.com/currencies/usd-sgd-forward-rates or here https://www.barchart.com/forex/quotes/USDSGD.M/overview

Of course another possibility is difference in US and SG inflation rate, that's Fisher effect at play. I can't find SG inflation forecast data, so can't deduce that.

But you can be sure in the long run, SGD's appreciation (against USD) will always mean SG rates are lower than the US side. Short-term, I may be wrong.

higher rates... increases its currency value... by locking up supply... reducing liquidity...

this is one of few ways central banks manipulate its currency

Good news (ladies and) gentlemen:

https://www.mas.gov.sg/news/letters-to-edit...on-linked-bonds

Inflation-linked SGS bonds may be coming soon. MAS still need to do some study anyway.

This post has been edited by TOS: Nov 9 2022, 06:15 PM

since 2010... usd has gotten stronger overall... now looks like it is range-bound

also looks like mas has intervene recently and sgd is slowly strengthening... until break the support, don't think is going anywhere soon...

for comparison...


the 2015-17 rise in USD imho is GE/1mdb... and unlike sg lately, BNM not intervening much... except today something is happening... myr doing OK relatively before 1mdb...


This post has been edited by dwRK: Nov 9 2022, 06:52 PM

You bid 4.7% today? I see from hwz mostly bid from 4.2 to 4.6 only…

Yup 4.7%.

I always bid higher than those kiasu kiasi HWZ members...

Ok lah maybe they are old age uncles, so cannot get too much shock when MAS announces bid results.

We will see tomorrow. Today's US 6 month is already 4.65%. https://www.investing.com/rates-bonds/u.s.-...onth-bond-yield

If I don't make it through the cut-off yield, will try again 2 weeks later.