The next 6 months T-bill’s auction is happening this Thursday.
So, if we are building or maintaining a T-bill ladder, don’t forget to put in a bid.
I will be putting in a non-competitive bid again.
No reason to agonize over how much to bid for in a competitive bid when chances are any cut-off yield is likely to be higher than offers from the banks for a 6 months fixed deposit for now.
I just produced a video on a 3.6% per annum offer for a fixed deposit but that is for a 9 months tenure.
This is the link to the video for readers who do not follow me on YouTube:
Cut-off yields for 6 months T-bill so far have stayed above 3.7% per annum.
However, it seems to be declining.
In January, we saw a 4.2% cut-off yield.
This month, we saw 3.73% which was the lowest cut-off yield this year.
Like I said in a podcast, interest rates are higher now but they are unlikely to stay high forever.
As investors for income, I did not get to where I am by relying on fixed income to grow my wealth.
However, I am not going to reject relatively attractive risk free and volatility free returns while they stick around.
If AK can do it, so can you!