Yields on S’pore government securities climb higher: Should investors buy in or stick to stocks?
Experts split: Spread cash across different T-bills or hold cash for stock opportunities.
Singapore's government securities yields are on the rise, prompting speculation on whether investors should move away from stocks and into these safer investments. Short-term Treasury Bills (T-bills), typically maturing in six months or a year, have seen their yields climb from around 1.3% to 1.4% in 2025 and early 2026 to near 1.9% today.
Longer-term Singapore Savings Bonds (SSBs), which can be held for up to 10 years, offer the highest returns, with the November issue projected to deliver an average annual return of 2.45% for the full term. However, investors must weigh the benefits of these risk-free assets against the potential returns of equities, especially given the anticipation of further interest rate hikes from the US Federal Reserve.
Experts suggest that while T-bills and SSBs provide secure returns, they may not be the best fit for every investor's financial goals, and a well-diversified portfolio that includes stocks could offer more attractive long-term gains.
Written by urgent.news from Straits Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
