Keep biding low or don't bid at all, will of course end up getting low yield. Simple demand and supply principle, yet many people don't understand. The new comers have now caused T-bills yield to be lower than fixed deposit. What's the point of biding 4% when fixed deposit rates from RHB and CIMB are already at 4.1 and 4.2 respectively. You might as well stick to fixed deposits and leave T-bills to those who want to make higher returns. Only when all of us bid higher then the yield will be high.
Hi Kelvin. Thank you very much for the details on T-Bills! You highlighted a strong point on OA for T-bills. Can I ask what if I have investment, like stocks and shares using OA and have been losing money for the past 10 years? Do I need to put back in accrued interest?
Hi Kelvin or others, pls clarify... In the example of 4$ non-competitive bid, if the interest rate is 2%, then how much will government take? i.e. we pay 3.92 after cutting off 2% from 4$ and then after 6 months, they pay 4$? is that correct
low balling at 0.01 percent means you will get at that yield rather than the cut-off yield ? so although you get 100 percent allocated, but you are stuck with a lousy yield for the sake of being fully subscribed. so instead, especially one too much money, you simply non-competitive bid at an amount large enough that you will be happy of 50 percent allocated and yet get the highest possible yield i.e. the cut-off.
Everyone will get the cut off yield, eg 4%. So even if i put 0.01%, i'll still get 4%, just that I'll be 100% fully allocated. Good for you, bad for everyone
@@KelvinLearnsInvesting But MAS website says this. "If you wish to invest in the bond only if it yields above a certain level, submit a competitive bid. You can specify the yield you are willing to accept in percentage terms, up to 2 decimal places. Note that you may not get the full amount that you applied for, depending on how your bid compares to the cut-off yield. Tip: A lower yield represents a more competitive bid, as you are indicating that you will accept a lower interest rate. You can submit multiple competitive bids." Isn't this contrary to your statement that no matter what interest u bid for you will get the cut off yield? According to my understanding of the MAS statement, you will be allocated the bond at whatever yield you bid for? (Assuming u get allocated in the first place)
@@ad0nyx938 Kelvin is right.. those who bid lower (to increase their chance of priority allocation) will get the cut-off yield. So if everyone starts to lowball their competitive bid, it could potentially lower the cutoff bid resulting in a lose-lose situation for everyone.
Keep biding low or don't bid at all, will of course end up getting low yield. Simple demand and supply principle, yet many people don't understand. The new comers have now caused T-bills yield to be lower than fixed deposit. What's the point of biding 4% when fixed deposit rates from RHB and CIMB are already at 4.1 and 4.2 respectively. You might as well stick to fixed deposits and leave T-bills to those who want to make higher returns. Only when all of us bid higher then the yield will be high.
@@treadstone6836 6 mths vs 12 months are different. And can be very impactful if it is part of a liquidity arrangement or a large portfolio. There are indeed fixed deposits as good as T-bills but nearly impossible to be better. There are enough people putting their cut-off at what you get on fixed deposits 6 months e.g. BOC and UOB (ending). Eventually, 6 months will show with equivalent rates in more banks.
Does the breakeven yield calculation also apply for using CPF OA for fixed deposit? If a bank offers 3.4% pa interest, does it mean it is actually 3.4/13*12 = 3.14% pa?
T bill is good if u have a use for the money after 6 months, n u have a large amount to invest. The problem with t bill is after it matures u need to resubscribe again, might get lower yield. I prefer ssb where i can just set and forget for 10 years, lower yields but i can easily redeem anytime
@@KelvinLearnsInvesting cpf OA give 2.5k for 100k per annual, and for 6 month is 2.5k x 6/12 = 1.25K. if 100k from cpf OA is put into the Tbill for 6 month will interest of 3% per annual , therefore 100k x 3% x 6/12 months = 1.5K. if TBill can give more than 2.5 % interest, shoudnt it be better to invest cpf OA to T bill?
@@KelvinLearnsInvesting but in your video at 10.00, u mentioned Tbill need to earn 2.92 % then worth it to use OA for investment in Tbill? i dun quite understand over here.
@@andifyousmellmyarmpit You want the CPF interest and T bill interest to be the same. So the equation will be: CPF_INTEREST x MONTHS_NOT_IN_CPF = T_BILL_INTEREST x 6 months
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This answers all my queries…very informative. Thanks Kelvin for sharing.😊
Nah I'll skip. I just DCA into voo period haha
We just put 99% bid.. gov have to give. Everyone just bid 99%
Hi Kelvin,do you know if Tbills are in the same risk category as SSB?Thank you.
Thanks for the info. Hope that in the next videos, pronunciation of words can be improved
Keep biding low or don't bid at all, will of course end up getting low yield. Simple demand and supply principle, yet many people don't understand. The new comers have now caused T-bills yield to be lower than fixed deposit. What's the point of biding 4% when fixed deposit rates from RHB and CIMB are already at 4.1 and 4.2 respectively. You might as well stick to fixed deposits and leave T-bills to those who want to make higher returns. Only when all of us bid higher then the yield will be high.
Hi Kelvin. Thank you very much for the details on T-Bills! You highlighted a strong point on OA for T-bills. Can I ask what if I have investment, like stocks and shares using OA and have been losing money for the past 10 years? Do I need to put back in accrued interest?
Dont need, only oa for property need to accrue interest
@@KelvinLearnsInvesting Thanks for the quick reply!!! :)
Great video! Answers all my questions in my small brain. Think there s a slip of the tongue around 7:46.. I might be wrong
Opss you are right haha, it should be retailer B
Hi Kelvin or others, pls clarify...
In the example of 4$ non-competitive bid, if the interest rate is 2%, then how much will government take?
i.e. we pay 3.92 after cutting off 2% from 4$ and then after 6 months, they pay 4$? is that correct
Can you make the video of why tiger broker send email on mee withdraw tax ptp 10% does it affect us
Hi Kelvin, can you advise how to chk my t bill portfolio? Is it from cpf account? I invest using cash.
Lies again? Play Beautiful Pay Bills
What if after allocating up to auction yield, there are still unsubscribed bonds?
so if I put 10k in T-bill 6month later how much do I get back
low balling at 0.01 percent means you will get at that yield rather than the cut-off yield ?
so although you get 100 percent allocated, but you are stuck with a lousy yield for the sake of being fully subscribed.
so instead, especially one too much money, you simply non-competitive bid at an amount large enough that you will be happy of 50 percent allocated and yet get the highest possible yield i.e. the cut-off.
Everyone will get the cut off yield, eg 4%. So even if i put 0.01%, i'll still get 4%, just that I'll be 100% fully allocated. Good for you, bad for everyone
@@KelvinLearnsInvesting But MAS website says this.
"If you wish to invest in the bond only if it yields above a certain level, submit a competitive bid. You can specify the yield you are willing to accept in percentage terms, up to 2 decimal places.
Note that you may not get the full amount that you applied for, depending on how your bid compares to the cut-off yield.
Tip: A lower yield represents a more competitive bid, as you are indicating that you will accept a lower interest rate. You can submit multiple competitive bids."
Isn't this contrary to your statement that no matter what interest u bid for you will get the cut off yield? According to my understanding of the MAS statement, you will be allocated the bond at whatever yield you bid for? (Assuming u get allocated in the first place)
@@ad0nyx938 Kelvin is right.. those who bid lower (to increase their chance of priority allocation) will get the cut-off yield. So if everyone starts to lowball their competitive bid, it could potentially lower the cutoff bid resulting in a lose-lose situation for everyone.
Keep biding low or don't bid at all, will of course end up getting low yield. Simple demand and supply principle, yet many people don't understand. The new comers have now caused T-bills yield to be lower than fixed deposit. What's the point of biding 4% when fixed deposit rates from RHB and CIMB are already at 4.1 and 4.2 respectively. You might as well stick to fixed deposits and leave T-bills to those who want to make higher returns. Only when all of us bid higher then the yield will be high.
@@treadstone6836 6 mths vs 12 months are different. And can be very impactful if it is part of a liquidity arrangement or a large portfolio.
There are indeed fixed deposits as good as T-bills but nearly impossible to be better.
There are enough people putting their cut-off at what you get on fixed deposits 6 months e.g. BOC and UOB (ending). Eventually, 6 months will show with equivalent rates in more banks.
I think multiple bids / submissions, upon successful allocated, mean I need to pay multiple transaction fee ($2.14) to the bank CPFIA acc.
Yea, that’s the downside
very informative... thank you
Hi Kelvin, for t-bills 6m using cpf OA, any chances of getting full allotment?? or how to get??
Does the breakeven yield calculation also apply for using CPF OA for fixed deposit? If a bank offers 3.4% pa interest, does it mean it is actually 3.4/13*12 = 3.14% pa?
Eh i think it should be 2.5 * 13 / 12? As long as the fixed deposit exceed this value, it will be worth it
Drop a bit only la where got crash 😅
Shh
kelvin is webull desktop version available in SG?
Yup available. But you can't convert currency in there yet. I heard it'll be out soon
Can have more than 200,000 SSB in different date applications ?
Cannot
this is so Informative! though u use Reddevil from HWZ, i think u explained better!!!!!!!!
Now still need to go down bank personally to open CPFIA?? I tot can open online already?
Open can do online. Invest CPF in T Bill need to go to bank
@@KelvinLearnsInvesting oh is it? How's the process like? Is it in your previous vids?
Kelvin, I am investing SSB every month. Is it better to invest TBill every month? Which is better?
T bill is good if u have a use for the money after 6 months, n u have a large amount to invest. The problem with t bill is after it matures u need to resubscribe again, might get lower yield. I prefer ssb where i can just set and forget for 10 years, lower yields but i can easily redeem anytime
Thanks
@@KelvinLearnsInvesting
cpf OA give 2.5k for 100k per annual, and for 6 month is 2.5k x 6/12 = 1.25K.
if 100k from cpf OA is put into the Tbill for 6 month will interest of 3% per annual , therefore 100k x 3% x 6/12 months = 1.5K.
if TBill can give more than 2.5 % interest, shoudnt it be better to invest cpf OA to T bill?
@@gohlaysiong Yup. This is true. If we are talking about CPF OA, it can't be used for SSB, so T Bill is an excellent choice here
@@KelvinLearnsInvesting but in your video at 10.00, u mentioned Tbill need to earn 2.92 % then worth it to use OA for investment in Tbill? i dun quite understand over here.
bro did u sell your tesla shares?
Still holding
Kevin, maybe a tutorial video on Kraken crypto exchange? Also Independent Reserve?
What is the 2.5 in 9:53? CPF rate?
Yup!
Why divide by 6 leh? Dont quite get the breakeven concept.
@@andifyousmellmyarmpit You want the CPF interest and T bill interest to be the same. So the equation will be:
CPF_INTEREST x MONTHS_NOT_IN_CPF = T_BILL_INTEREST x 6 months
now ppl is using T-bill for SA shielding, so the bidding should be 4.1% at least so that wont loose out too much interest
Crash is an exaggeration. Is click bait a must for RUclipsrs? Good contents though, if you have solid contents, no need resort to click bait. IMO.
Agreed.
Unfortunate truth: it is required if your main source of income is from RUclips.
A good click bait nonetheless 👌
Bondpocalypse now....The horror the horror...I hate cats..
Wah I got clickbaited haha
Sponsorship lai liao, click baiting up the ante sud sud...
We love money why cannot get 15 pct
If you can convince everyone to put 15% competitive bid, everyone will get 15%
Crashed?
Crash! Ji Ba Boom!