I was allocated $20k of the most recent 4.28% T-bill and $20k of the Jan 3.26% SSB. Even though next month's SSB rate appears to be going lower, investors didn't take this as the last chance to add to their SSB. As a result, anyone who bid less than $172k got allocated. It's either a case of retail liquidity drying up because retail investors have already been fully allocated in previous rounds and/or people are rushing to buy T-bills or fixed deposits.
While 6 month T-bills and for that paper 1 year promotional fixed deposits above 4% look attractive, there is no guarantee you can roll them over for at least 4%. My view is that it is good to have a mix of long and short term instruments. If anything, I'm sort of regretting not bidding more for this SSB, because SSB rates appear to be going south next year.
No comments:
Post a Comment