{
  "id": 8184333,
  "title": "Fed rate hike: Will T-bills make a comeback?",
  "url": "https://urgent.news/2026/09/18/fed-rate-hike-will-t-bills-make-a-comeback",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-18T05:42:13.000Z",
  "source": {
    "name": "The Business Times - Companies & Markets",
    "slug": "the-business-times-companies-markets",
    "url": "https://www.businesstimes.com.sg/companies-markets/capital-markets-currencies/fed-rate-hike-will-t-bills-make-comeback"
  },
  "original_language": "en",
  "account": "With the US Federal Reserve's rate hike on September 16, concerns have surfaced among investors regarding the potential resurgence of Treasury bills (T-bills). The Fed raised rates to a range of 3.75 to 4 percent, marking the first increase since July 2023. Analysts hold varying opinions on how this will influence yields and demand for Singapore T-bills. T-bills are short-term government securities issued at a discount, offering a full face value upon maturity. Their yields have plummeted below 2 percent, hovering around 1.5 percent since mid-2026. Francis Tan, IndoSuez Wealth Management's chief strategist (Asia), suggests the Fed's action is an \"insurance hike,\" not indicative of a broader rate hiking cycle. This means assets tied to higher short-term rates or floating coupons may benefit, while those reliant on long-dated earnings or cheap funding may suffer. The outlook for T-bills and other Singapore government bonds is mixed, with short-duration Singapore dollar cash and T-bills supported, but long-duration bonds potentially pressured if global yields rise. Eugene Leow, head of fixed income research at DBS, anticipates T-bill yields to near 2 percent by early 2027, as the Fed could raise rates to 4.5 percent by then. The Singdollar's resilience, due to Singapore's distinct currency management approach, might counterbalance the impact of a Fed rate hike. However, further upside in US dollar rates and yields may not be substantial, especially in a market anticipating more rate hikes by mid-2027. T-bill yields have already risen to multi-year highs ahead of the Fed's decision, with industry watchers noting that the impact has been expected for some time.",
  "summary": "US Treasury yields have already risen to multi-year highs ahead of the hike",
  "key_points": [
    "Federal Reserve hikes rates to 3.75-4% on September 16",
    "T-bill yields plummeted below 2% since mid-2026",
    "T-bills and short-duration cash supported despite rate hike"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}