Fed Hikes Rates: Impact on T-Bills, Fixed Deposits, and Blue Chip Stocks

The US Federal Reserve has raised its benchmark interest rate by 25 basis points to 3.75%, 4.00%, marking its first increase since 2023.

This move is significant for investors, as it can impact various types of investments such as T-bills, fixed deposits, and blue chip stocks.

The recent auction saw the T-bill yield jump to 1.7%. In Singapore, fixed deposit rates have been climbing this month.

However, not all sectors are affected equally. For instance, Singapore REITs' performance has weakened, while Singapore banks such as DBS and OCBC remain close to all-time highs.