High yields to stay? T-bills paid 3.73% to 4.2% p.a. so far.

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:

Locking in 3.6% per annum for the next 9 months.

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!

Source link

Leave a Comment