Weekly Sprout

Weekly recap: T-bill yield jumps and SSB demand rises

By Beansprout • 30 Sep 2023 • 0 min read

The cut-off yield on the Singapore T-bill rose to 4.07%, and applications for the latest SSB increased.

what happened in the markets 30 sep 2023

In this article

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There was plenty of good news for savers in the past week with higher interest rates. 

Firstly, we saw the yield on the 6-month Singapore T-bill jump to 4.07%, significantly above the previous cut-off yield of 3.73%.

Next, all eligible applicants for the latest Singapore Savings Bonds were able to get full allocation even as the 10-year average return rose to the highest level this year. 

However, the higher bond yields have meant further weakness in the share price of REITs, with many hitting a multi-year low. We analyse if the sell-off presents a buying opportunity for Mapletree Pan Asia Commercial Trust and OUE Commercial REIT.

Lastly, for users impacted by TD Ameritrade’s announcement that it will stop serving retail investors in Singapore, we look at what are some of the alternatives available

weekly sprout 30 sep 2023
Source: Bloomberg. Price as of market close on 29 Sep

 

🛢 OIL PRICES SURGE

What happened? 

Oil prices climbed to the highest level this year, reaching a high of above $95 per barrel. 

What does this mean?

The recent spike in oil prices was a result of Russia and Saudi Arabia’s announcement that they will extend production cuts through the end of 2023. 

On the other hand, oil demand has remained resilient despite concerns about a global economic slowdown.

Higher oil prices led to concerns that inflation may remain elevated and global central banks will have to keep interest rates higher for longer. Government bond yields rose further as a result. 

Why should I care? 

According to the International Energy Agency (IEA), the extension of output cuts will “lock in a substantial market deficit” into the fourth quarter of this year.

Companies in oil and gas related segments including oil exploration and production, as well as offshore marine services may benefit from an increase in oil prices.

Read our analysis on PTTEP, one of the leading oil and gas companies in Southeast Asia.

 

💡 THE BIG IMPORTANT STORY

Venture Corp near multi-year lows. Is it a bargain?

Venture Corp saw its share price hit a year-low recently amid a flurry of headwinds.

venture corp share price 2023

 

🚗 WHAT'S MOVING

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

 

🤓 WHAT WE’RE LOOKING OUT FOR THIS WEEK

Source: Bloomberg, SGX 

 

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