Okay so the next T-Bills auction is on March 2, 2023. Interestingly, the last T-Bills auction picked up in yield (went up to 3.93% vs 3.88% the previous auction). Global interest rates have also gone up quite a bit from the January lows (driven by stronger US inflation and economic data). Which raises the possibility that T-Bills yields may start going up again. So let’s look a bit more into this.

What is the estimated yield on the next T-Bills auction?

SGS Yields – 3.91%

Latest 6 month T-Bills are trading at 3.91% on the open market:

12 week MAS Bills – 3.98%

Whereas the institutional only 12 week MAS bills trade at 3.98%:

Interest Rate Trend is firmly up

Interest rate trend is firmly up though. The market is now pricing in a peak Fed Funds Rate…