Weekly recap: Higher T-bill yield and fixed deposit rates

By Beansprout • 23 Sep 2023 • 0 min read

Fixed deposit rates and the Singapore T-bill closing yield moved up with the Fed signaling that interest rates may stay higher for longer.

what happened in the markets 23 Sep 2023
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There’s one thing you need to know this week - the Fed signaled that interest rates may stay elevated for a longer period of time than previously expected. 

Following the Fed meeting, US government bond yields climbed to the highest levels since 2007. 

For savers, the good news is that we are starting to see interest rates on fixed deposit accounts go up once again, with the best 12-month fixed deposit rate now at 3.60%.

We also saw some banks raising the interest rate on their savings accounts this week

With more cash management accounts aimed at helping investors generate potentially higher returns compared to savings accounts now available, we share how to choose the best cash management account here. 

Lastly, we find out what the higher US government bond yields would mean for the upcoming 6-month T-bill auction on 28th September. 

Weekly price movement 23 Sep 2023
Source: Bloomberg. Price as of market close on 22 Sep



What happened? 

The US Federal Reserve (Fed) has kept its benchmark interest rate unchanged at 5.25% to 5.5% in its latest meeting. 

However, the key message that came out from the Fed meeting is that interest rates could stay higher for longer to bring down inflation. 

What does this mean?

The latest projections by Fed officials indicate that the benchmark rate could be at 5.1% at the end of next year based on the median estimate. 

This is higher than the projected benchmark rate of 4.6% in the last projection in June. 

Why should I care? 

Following the Fed meeting, there was a spike in US government bond yields, with the US 2-year government bond yield reaching close to 5.2%, the highest level since 2007.

Global stock markets fell, with the S&P 500 ending the week 2.9% lower. The Straits Times Index (STI) also ended the week 2.3% lower. 

Read our analysis on what this means for T-bills, stocks and REITs,



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  • Singtel announced that private equity firm KKR will acquire a 20% stake in its regional data centre business with an investment commitment of up to S$1.1 billion. This will put the enterprise value of Singtel’s regional data centre business at S$5.5 billion. Click here for Singtel share price and analysis.
  • SIA and Scoot flew 34,900 fewer passengers in August compared to July, and their load factors slipped slightly. The cargo load factor also declined on the group level in August compared to July. Click here for SIA share price and analysis.
  • ComfortDelgro’s share price rose after public transport fares for adults who pay by card will climb by up to 11 cents from 23 December, following the yearly fare review exercise by the Public Transport Council. Click here for ComfortDelgro share price and analysis.
  • SingPost will raise the the cost of local standard regular mail to 51 cents from 31 cents currently from 9 October to “reflect the escalating costs of maintaining the postal service”. Click here for SingPost share price and analysis.
  • NIO’s announced a proposed issuance of $1 billion in convertible notes to further strengthen its balance sheet.

Source: Bloomberg, CNBC, Financial Times, Business Times, Edge Singapore



Source: Bloomberg, SGX 

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