Choose wisely when it comes to the many options for your excess cash

IN JUST one month, benchmark 10-year US Treasury yields have fallen sharply from about 5 per cent to less than 4.5 per cent, as at Nov 17.

This decline was precipitated by several events, including a slightly dovish statement by the Federal Reserve, which nevertheless held rates as expected, as well as a milder-than-expected consumer price index (CPI) print.

Short-term Treasury yields have also moderated slightly over the past month, though the extent of moderation has been much smaller than that of longer-end yields. Singapore fixed-deposit (FD) rates have generally held above 3 per cent, while the overnight Sora (Singapore Overnight Rate Average) also remains above 3.8 per cent.