Singapore T-Bill yield

[Dosser]

Drop in T-Bill yield to 2.56%:


   

That is a significant drop from where it was, fluctuating at just below 3%. Economic conditions slowing and/or move to safety in response to US Tariff incoherence?

Deteriorating economic conditions are not going to be good for the stock market overall, but secure high yielding stocks may get a boost. May also help S-REITs which have been facing higher cost of refinancing on top of competition from fixed income.

[weijian]

Hi Dosser,

In general, the bond market is the deepest among all asset classes and hence is the vehicle for most of the biggest traders to make their bets, especially government debt. So government debt may be representative of how various institutions view the future economic situation. But I would think that the US government Tbills/notes/bonds is probably more reflective than that of the Spore Government's.

As a side hobby, I monitor the US 10 year treasury bond. I suppose it is moving in similar direction as the Spore 6 month Tbill in recent months. But it is really tough trying to predict correctly and then position correctly from a correct prediction. Since I gotten more serious about investing some time back, I realized my hands/mind are full just from understanding about businesses, accounting and how business owners think (since I hadn't been one originally).

But is macro and economic conditions important? Of course it is! If the macro is good and the company is still rejected by the bull market, it speaks volumes. One could also be the best stock picker in the world but if they got in at/near market peaks, their returns will still be positive but very much diminished.