T-bills crashed to 2%

 

Turns out SSBs were better after all?

As I have mentioned, I have been placing my maturing T-bill funds into a combination of Fullerton SGD Fund, LionGlobal SGD MMF, and LionGlobal All Seasons (Standard) given the declining T-bill rates.

What I found interesting is how so many investors prioritised putting funds into 6 month T-bills as opposed to SSBs when SSBs were yielding 3%+.   To me this was a classic example of short-termism. 

Since you can always redeem an old SSB and put the money into a new SSB if rates rise (which is what I did for a few of my SSBs), bidding for SSBs yielding >3% was a no brainer.  I made sure I had hit the $200k quota of 3%+ SSBs.

At the end of the day, the drop of interest rates makes it important to rethink my cash management strategy. The opportunity cost of holding cash/near-cash is high if rates are low. but I would like to have some lower risk investments. Which is why some of my cash allocation is going into the conservative LionGlobalAll Seasons (Standard) instead.