This could prompt T-bill investors to seek better returns in dividend stocks. REITs, with improving sentiment and attractive valuations of 0.8 times P/B, more than 6% sector yields, will be key beneficiaries as well.
The yield of the most recent issue of 6-month T-bills has fallen to another multi-year low of 2.56% - a level seen on July 2022 when the Fed fund rates were at 1.5% to 1.75%.
At this level, the yield of this popular investment is barely higher than 2.5% paid for CPF Ordinary Account money.
