Weekly recap: T-bill yield rebounds unexpectedly

By Beansprout • 25 Nov 2023 • 0 min read

The cut-off yield on the latest 6-month T-bill rose even as bond yields have broadly declined.

what happened in the markets 25 nov 2023

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Bond yields have been broadly falling in recent weeks. 

It was hence a surprise that the cut-off yield for the latest 6-month Singapore T-bill rose to 3.8% from 3.75% in the previous auction.

We find out what led to the bounce in the cut-off yield in the T-bill auction. 

With the decline in the 10-year government bond yield, we discuss if we should subscribe to the latest issuance of the SSB or wait for the next one.  

The good news is that fixed deposit rates have not been cut so far despite the fall in bond yields. 

If you are looking to lock in the high interest rates while they last, check out our guide to the best fixed deposit rates in Singapore.

Lastly, Singapore could see its first SPAC merger after Vertex Technology Acquisition Corporation (VTAC) announced the proposed business combination with 17LIVE. 

We share what shareholders need to know before the upcoming EGM.

weekly market update 25 nov 2023
Source: Bloomberg. Price as of market close on 24 Nov 2023

🔥 REITS ARE FIGHTING BACK

What happened? 

Singapore REITs staged a rebound as the 10-year Singapore government bond yield fell further.

What does this mean?

The 10-year Singapore government bond yield fell to as low as 2.93% this week from a high of close to 3.5% in October. 

With lower bond yields, the iEdge S-REIT Index, which provides a benchmark to the performance of Singapore REITs, has risen by close to 10% from its bottom in late October. 

Why should I care? 

Despite improved sentiment towards Singapore REITs, it is still important to select REITs that have strong operational performance and are able to grow their distributions despite elevated interest rates. 

We look at three Singapore REITs that managed to raise their dividends despite industry headwinds. 

💡 THE BIG IMPORTANT STORY

T-bill yield rises to 3.8%. Why the bounce?

The cut-off yield on the latest 6-month Singapore T-bill auction on 23 November increased to 3.8%.

6 month singapore t-bill auction result 23 nov 2023

 

🚗 WHAT'S MOVING

  • Singtel announced that the CEO of its Australian subsidiary Optus has resigned after a nationwide outage left about 10 million Australians without phone or internet access for 12 hours. 
  • City Developments reported sales of S$325 million in the third quarter, an increase from S$281 million in the previous year. The higher sales was driven by the launch of The Myst, a 408-unit residential development at Upper Bukit Timah.
  • Thai Beverage reported earnings of THB 27.43 billion for the FY2023 ended 30 September, a 9% decline compared to the previous year. While revenue rose with an improvement in Thailand’s economic activity, operating profit declined with higher distribution costs, administrative expenses, finance costs and a net loss on foreign exchange.
  • Nvidia (NVDA) warned about the negative impact in the next quarter from export restrictions on its sales to organisations in China. Nvidia reported revenue and earnings that surpassed market expectations, driven by strong demand for its chips used to power artificial intelligence (AI).
  • Microsoft (MSFT) briefly agreed to hire OpenAI’s Sam Altman to lead a new advanced AI research team, before Altman eventually returned to the AI startup as chief executive officer. 

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

🎒 LEARN AND INVEST WITH WEBULL

Netflix raises prices again. Here's what it means for the stock.

Netflix’s share price rallied 16% after the streaming company reported subscriber growth in key markets and a price hike on its membership plans.

netflix share price subscriber growth nov 2023

 

🤓 WHAT WE’RE LOOKING OUT FOR THIS WEEK

Source: Bloomberg, SGX 

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