Demand is up in the latest tranche, with auction receiving S$13.7 billion in applications for the S$7 billion on offer
THE cut-off yield on Singapore’s latest six-month Treasury bill (T-bill) rose slightly to 3.08 per cent, from 3.04 per cent in the previous six-month auction that closed on Nov 7.
Auction results released by the Monetary Authority of Singapore on Thursday (Nov 21) showed that demand grew in the latest tranche, with the auction receiving a total of S$13.7 billion in applications for the S$7 billion on offer.
This represented a bid-to-cover ratio of 1.96 versus the previous auction’s ratio of 1.82 when S$12.3 billion in applications were received for the S$6.8 billion on offer.
The latest auction’s median yield stood at 2.95 per cent per annum, unchanged from the same amount as at Oct 24. Average yield grew to 2.76 per per cent per annum from 2.72 per cent previously.
Non-competitive bids totalled S$2 billion and were fully allocated. About 91 per cent of competitive applications at the cut-off yield were allotted.
Singapore is expected to issue up to another S$450 billion in government securities after a parliamentary motion was passed on Nov 12 to raise the government’s issuance limit to S$1.515 trillion from S$1.065 previously.
The new limit is expected to last until 2029.
Over 60 per cent of the S$450 billion increase is anticipated to be issued as Special Singapore Government Securities to meet the Central Provident Fund’s investment needs.
The rest of the increase is for projected issuances of Singapore Savings Bonds, T-Bills and Singapore Government Securities (Market Development).
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