Weekly Recap: T-bill yield and fixed deposit rates bounce

I was at a shopping mall earlier this week and had some time to spare before my dinner appointment.

By habit, I strolled into the bookstore and picked up the book “The wealth money can’t buy” by Robin Sharma. 

And so this week I spent my nights reading up on the 8 kinds of wealth the author believes we should build.

Outside of financial wealth, the other habits that we are encouraged to embrace include growth, wellness, family, craft, community, adventure and service. 

But you may ask – how do we start building such habits? The author’s advice – ‘Just start’.

How do you start a book? You write the first page. How do you start the process of getting fit? You get up early tomorrow and start doing the first push-ups.

This week, we’ve compiled a few lists to help you start to make your savings work harder. 

The best 3-month fixed deposit rate for the month of June has been raised to 3.5% p.a.

Likewise, some banks have raised the interest rates on their savings accounts, with promotional rates offered for fresh funds deposited. 

The cut-off yield on the latest 6-month T-bill also rebounded to 3.76%, offering more good news for investors. 

If you are looking for stocks or REITs to add to your income portfolio, we've created a screener for Singapore stocks with the highest dividend yield and REITs with attractive valuation. 

I hope these articles and tools will be helpful in getting your started, and look forward to your feedback on how they can be improved.

Gerald, Founder of Beansprout

⏰ This week in markets

💸 Rate cut hopes diminished

What happened? 

The US economy added about 272,000 jobs in May, far more than the market expectation of 185,000 jobs. 

At the same time, wage growth reaccelerated, reflecting the strength of the US labour market. 

What does this mean?

The strong jobs data led investors to expect that the US Federal Reserve will hold back on its interest rate cuts. 

According to the CME Fedwatch Tool, investors pushed back expectations of the first rate cut from September to November. 

This would mean that there may only be one interest rate cut in 2024. 

Why should I care? 

US government bond yields rose slightly, with the 2-year US government bond yield climbing to 4.9% after falling to as low as about 4.7% earlier in the week.

Singapore government bond yields rose with the higher US government bond yields, and the cut-off yield on the latest 6-month Singapore T-bill rose to 3.76% from 3.65% in the previous auction. 

REITs had a mixed performance, with gains led by Mapletree Pan Asia Commercial Trust (+3.3%). We dive into the REIT’s recent results and divestment to find out if the worst is over.

However, hospitality REITs fell after Singapore’s tourist arrivals and average room rates fell in April from March 2024. Far East Hospitality Trust’s share price fell by 2.4% and CDL Hospitality Trust’s share price fell by 1.0%. 

🚗  MOVNG THIS WEEK

Seatrium has been awarded a letter of intent by BP Exploration & Production Inc. to provide early engineering works pending finalization of a definitive contract for a Floating Production Unit Project in the US Gulf of Mexico.

Sembcorp Industries added three Vietnam Singapore Industrial Parks, with stakes of between 24.6% to 49.3%. It now has 18 parks with total licenced land area of 11,588 hectares.

Wilmar’s Chairman and CEO Kuok Khoon Hong has bought 1 million shares in the company at $3.08 per share. City Development’s independent director Colin Ong Lian Jin has bought 100,000 shares at $5.80 per share. 

Keppel Infrastructure Trust has completed the acquisition of 97.7% stake in Ventura Bus Lines in Melbourne, Australia. The acquisition was funded by a term loan facility of up to S$400 million.

Capitaland Ascott Trust has acquired the remaining 10% stake in Standard at Columbia, a freehold 678-bed student accommodation property in South Carolina, US. 

Source: Bloomberg, CNBC, Business Times, Edge Singapore

💡 THE BIG IMPORTANT STORY

kopi-C with Singtel’s Group CFO: ‘We impact the lives of more than 700 million people’

With its new Singtel28 plan, Singtel is racing ahead to extend its lead in connectivity, digital services and digital infrastructure. Its Group CFO Arthur Lang shares more.

🤓 WHAT WE’RE LOOKING OUT FOR THIS WEEK

• Wednesday, 12 June: US Consumer Price Index (CPI) data, US Federal Reserve meeting 
• Friday, 14 June: Bank of Japan rate decision  

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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