T-bill yield falls and stocks rebound: Weekly Market Recap

Everywhere I go these days, conversations seem to start with the relentless monsoon rains—and the endless struggle of drying laundry.

Similarly, the financial calendar has been pouring in with key updates to kickstart the year:

• T-Bill Yields: The 6-month Singapore T-bill auction saw its cut-off yield dip to 2.99%. We explore whether the upcoming 1-year T-bill auction on 23 Jan offers a better opportunity.
• Earnings Season: As Singapore’s earnings season gets underway, we take a closer look at what’s ahead for Singapore banks and whether there’s more good news in store.
• US Market Outlook: Ahead of President-Elect Trump’s inauguration, we analyse the prospects of the S&P 500 index following its stellar performance in the past two years .

To top it off, we’re excited to invite you to our in-person community get-together on 10 February, where we’ll share our 2025 plans, market insights, and a chance to connect with like-minded individuals.

I look forward to seeing you there, as we navigate the ever-changing weather of the financial markets.

Gerald, Founder of Beansprout

⏰ This Week In Markets

🏛 Inflation eases

What happened? 

The US core consumer price index (CPI), which excludes food and energy, increased by 0.2% month-on-month, below market expectations for a 0.3% increase. 

This marks the slowest pace of price growth since July 2024.

What does this mean?

The weaker-than-expected inflation data has eased investor concerns about prolonged price pressures in the US, following months of elevated readings. 

This development opens the door for the Fed to consider further rate cuts in the year ahead.

Why should I care? 

US stocks bounced back from last week’s selloff, supported by a dip in US government bond yields. 

Investors now turn their attention to President-Elect Donald Trump’s inauguration next week. 

We explore the outlook for the US stock market in this evolving landscape.

🚗  Moving This Week

• Singapore Airlines (SIA) and its low-cost arm Scoot carried a total of 3.6 million passengers in December, up 7.1% from the year before and marking a monthly record for the SIA group. Read more here.
• SGX total securities market turnover value climbed 5% year-on-year to about S$20 billion in December, as the benchmark Straits Times Index (STI) recorded a 17-year peak. Read more here.
• City Developments achieved total divestments of more than S$600 million in 2024 as part of its capital recycling initiative. The completed divestments include the Ransome’s Wharf site in London and the freehold eight-storey industrial building Cideco Industrial Complex in Singapore. Read more here
• Mapletree Logistics Trust has entered into a purchase agreement to divest a property at 8, Tuas View Square for about S$11.18 million. The sale price is 39.8% above the latest valuation of S$8 million as at Nov 5, 2024. Read more here.
• First REIT says it has received a "preliminary non-binding letter of intent" from PT Siloam International Hospitals to acquire its portfolio of hospital assets in Indonesia. Siloam is the existing tenant and operator of these hospital assets. Read more here.

Source: Bloomberg, CNBC, Business Times, Edge Singapore

💡 The Big Important Story

Is the 1-year T-bill better than the 6-month T-bill and fixed deposits?

The closing yield on the 1-year Singapore T-bill of 2.80% is below the 6-month T-bill yield. However, investors of the 1-year T-bill may face lower re-investment risks.

🤓 What we're looking out for next week

• Monday, 20 Jan: US presidential inauguration day
• Tuesday, 21 Jan: Mapletree Logistics Trust earnings
• Wednesday, 22 Jan: Frasers Centrepoint Trust, Mapletree Industrial Trust earnings
• Thursday, 23 Jan: Mapletree Pan Asia Commercial Trust, OUE REIT, Suntec REIT earnings
• Friday, 24 Jan: Keppel DC REIT earnings

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

Source: SGX, Bloomberg, Refinitiv

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