Money Market Investors Get Treasury Rate Surprise
The latest Treasury Bills Primary Market Auction delivered a mixed but strategically significant shift across the curve. While yields on the 91-day (15.30%; True Yield: 15.92%) and 182-day (15.50%; True Yield: 16.81%) tenors remained broadly stable, the 364-day bill surged to 17.50%, translating to a True Yield of 21.21%.
This decisive upward move on the long end pushes 1-year risk-free returns above the 20% threshold, positioning it among the most compelling fixed-income opportunities currently available.
The upward repricing of the 1-year instrument signals heightened investor demand for inflation-beating returns and a continued preference for locking in yields ahead of year-end liquidity pressures. With rates now at multi-year highs, fixed-income investors have a strong window to secure elevated returns before potential market normalization in early 2026.
Investors should, however, factor in the statutory 10% Withholding Tax (WHT) on interest earned, which applies to the net yield when benchmarking against alternative instruments. Nonetheless, even after tax, the 1-year bill remains a standout in the risk-free segment, supporting a bullish outlook for T-bill allocations in the near term. #Money Market Investors Get Treasury Rate Surprise#
