Weekly recap: T-bill yield stays high as inflation surprises

“What are some mistakes to avoid when we are starting to invest?”

This was a question a student posed to me at the NTU Singapore Financial Conference today. 

Often in life, we are afraid of making mistakes. This is especially so when it comes to investing, as there may be a fear of losing money. 

Personally, my greatest mistake when it came to investing was not starting as early as I should have (amongst many others like FOMO, not cutting losses etc).

So my advice to my younger self would be to start small, and to start early. 

This may be as soon as I have sufficient emergency cash parked aside in a high yield savings account.

The need to make our money work harder has become more important as inflation remains persistently high, as seen in the latest US consumer price index data (more on this below). 

If you are looking for a relatively safe way to get started, the good news is that the yield on the Singapore T-bill has remained high at 3.78% in the latest auction. 

This is despite the consistent decline in fixed deposit rates in recent weeks. 

Alternatively, if you are looking for some blue-chip stocks in the Singapore market, we share three stocks which have consistently paid out dividends. 

And should you be looking for even more inspiration, join us next Saturday (23 March) at the “How to get to $100k by 30” seminar, where we will be sharing even more tips to help you get started. Oh, and the first 300 attendees will get a $5 NTUC voucher too! 

I hope to see you there!

Gerald, Founder of Beansprout

🎈 INFLATION'S NOT COMING DOWN 

What happened? 

US Inflation remained persistently high in February, dampening investor expectations that the Federal Reserve will cut interest rates rapidly. 

The US consumer price index (CPI) rose by 3.2% from a year ago, above market expectations of 3.1%.

What does this mean?

With inflation running hotter than expected for the second straight month, investors have cut their expectations of interest rate cuts in 2024.

According to the CME Fedwatch Tool, investors expect the Fed to cut interest rates by four times this year, moderating from the five rate cuts expected just a week ago. 

Why should I care? 

US government bond yields jumped following the strong inflation data.

However, stock investors shrugged off the numbers with the first rate cut still expected in a few months’ time in June. 

Check out our compare yield tool to compare the yield of various instruments and make your money work harder.

🚗  MOVING THIS WEEK

• Singtel has clarified that there is “no impending deal to offload Optus for the said sum”, after the Australian Financial Review (AFR) reported that the company is in advanced discussions to fully divest its Australian arm for A$16 billion (S$14 billion). The stock has jumped by 3.8% on Wednesday before a trading halt was announced. 
• City Developments has stepped up its share buybacks as it believes its shares are currently trading significantly below their intrinsic value despite the company’s “strong fundamentals”.
• SGX reported a total securities turnover value of $25.03 billion in February 2024, 22% higher compared to the previous month despite fewer trading days. Retail led the jump in activity, with the number of retail accounts that traded rising 34% month-on-month at a 12-month high. 
• Frasers Logistics & Commercial Trust (FLCT) has agreed to acquire a 89.9% stake in four logistics properties in Germany for EUR 129.5 million (S$188.9 million). The acquisition will be funded through external debt financing, and is expected to be completed by end-March. 
• Seatrium aims to grow its earnings before interest, taxation, depreciation and amortisation (EBITDA) by four times to more than $1 billion by FY2028 and deliver a return on equity (ROE) of more than 8%, according to targets set at its latest investor day. 

Source: Bloomberg, CNBC, Business Times, Edge Singapore

💡 THE BIG IMPORTANT STORY

T-bill yield steady at 3.78%. Here’s why it has remained high

The cut-off yield on the latest 6-month Singapore T-bill auction on 14 March remained high at 3.78%.

🤓 WHAT WE’RE LOOKING OUT FOR THIS WEEK

• Monday, 18 Mar: Sasseur REIT ex-dividend date
• Tuesday, 19 Mar: Xpeng earnings
• Wednesday, 20 Mar: Asian Pay Television Trust ex-dividend date
• Thursday, 21 Mar: Jardine Matheson, DFI Retail Group and Hongkong Land ex-dividend date
• Saturday, 23 Mar: SGX x DBS x Nikko AM seminar: How to reach $100k by 30

Get the full list of Singapore stocks, REITs and ETFs with upcoming dividend payments with our dividend calendar.

Also, check out these 3 Singapore REITs that are paying out dividends in March.

Source: SGX, Bloomberg, Refinitiv

🌱 PLANT THE SEED OF WEALTH

"There's no way that you can live an adequate life without making any mistakes."

"All I want to know is where I'm going to die, so I'll never go there."
 

- Charlie Munger, Investing Legend

🤔 1 QUESTION THIS WEEK

What is one investing mistake you've made? Share with us in the comments section below.

We read them all and will do our best to answer any queries you may have.

👩‍💻 WATCH OUR RECAP

Missed out on what has been happening in the markets? We're pleased to partner with Securities Investors Association Singapore (SIAS) to bring you a Weekly Market Review. Catch the video every Monday on Facebook. 

👩‍💻 PROMO

Get an exclusive $50 voucher when you sign up for Moomoo via Beansprout. T&Cs apply. Learn more here.