SINGAPORE’S latest six-month Treasury bill (T-bill) is offering a cut-off yield of 3.78 per cent, according to auction results released by the Monetary Authority of Singapore (MAS) on Thursday (Mar 14).
This is slightly down from the 3.8 per cent that was offered in the previous auction, which closed on Feb 29.
Demand rose in the latest tranche. Auction results showed a total of S$14.4 billion in applications for the S$6.3 billion on offer, representing a bid-to-cover ratio of 2.29.
In the previous auction, applications totalled S$12.4 billion for the S$6.4 billion on offer.
Around 96 per cent of non-competitive applications, totalling S$2.5 billion, were allotted in the latest auction.
Meanwhile, around 39 per cent of competitive applications at the cut-off yield were allotted. Those who specified a lower yield were fully allotted, and those who specified a higher yield were not allotted.
T-bill yields hit a 30-year high of 4.4 per cent in December 2022, and have mostly hovered around the 3.7 to 3.8 per cent range since March 2023, amid the high-interest-rate environment.
But yields started to fall at the end of 2023, as the market expected the US Federal Reserve to cut interest rates, and hit a one-year low of 3.54 per cent in the Feb 1 auction.
