Part 2/10:
T-bills are traditionally considered a low-risk, short-term investment option. However, their yields have been trending downward, with the latest at approximately 2.73%. With the US Federal Reserve signaling potential rate cuts, Singapore's T-bill yields could decline even further. This diminishes the appeal of T-bills, especially for investors seeking higher returns.
Despite their decreasing yields, T-bills still serve a purpose. They are suitable for investors with very short-term horizons—such as those planning to make a purchase within six months or a year, like buying a house or a car—or for small business owners with surplus cash needing a secure, liquid place to park funds. The key advantage remains the safety and capital preservation they offer, with full redemption at maturity.