Like you, I'm always looking for ways to make the most of my own savings. I recently spotted an opportunity in the financial markets that we should act on quickly.

For the last two years, you might have been focusing on 6-month T-bills and/or Singapore Savings Bonds to keep your savings safe. But now, the tide is about to change, and your strategy needs to adapt.

The U.S. Federal Reserve is expected to start cutting interest rates in September, which means you could face lower returns when your current SG T-bills mature.

Source: Business Times (Cut-off yield on latest Singapore 1-year T-bill slips to 3.38%)

A 6-month T-bill yielding 3.61% per year (as of July 26, 2024) is a nice return, but it's already started to decline from the 3.72% per year issued on July 1. To stay ahead, it's wise to invest some cash into longer-term bonds to lock in higher rates.

Investing in a mix of U.S. Treasury bonds, high-quality corporate bonds, and securitized debt—like securities that bundle mortgage loans and other debts—can help you lock in the current high rates.

For example, U.S. Treasury Notes with maturities of 3 to 7 years are offering over 4% per year, which is a good rate to have for the next 3 to 7 years. Additionally, bonds can increase in value, unlike SSBs or T-bills.

Take a look at the current yields:

• U.S. 3-Year Treasury Note: 4.184%
• U.S. 5-Year Treasury Note: 4.064%
• U.S. 7-Year Treasury Note: 4.106%

Before the tide changes, make sure to adjust your strategy to take advantage of this opportunity.

Reach out to me if you would like to to discuss further.

Zest Chia

Executive Wealth Consultant | Associate Estate Planning Practitioner |

Licensed General Insurance Advisory

DISCLAIMER;

This message contains privileged and confidential information from Infinity Financial Advisory Pte Ltd. If you are not the intended recipient of this electronic message, please do not disseminate, copy or take any action in reliance on it. We request you notify us immediately before deleting this message. Any views expressed in this message or attachment/s are those of the individual sender and are not necessarily the views of the company. Infinity Financial Advisory Pte Ltd uses virus scanning software and while due care and attention is taken; the company excludes all liability for any loss or damage caused whether directly or indirectly by any computer virus or other defects transmitted with any email and any attachment(s), to the extent permitted by law. It is sent on the strict condition that the user carries out and relies on its own procedures for ensuring that its use will not interfere with the recipient's systems including but not limited to scanning this email and any attachment(s) for viruses and defects before opening or sending them on. The recipient assumes all risk of use and releases the sender from all responsibility and liability for any direct or indirect consequence of use.