Demand has increased, with applications totalling S$15.5 billion for the S$6.6 billion on offer
THE latest Singapore six-month Treasury bill (T-bill) inched down to a cut-off yield of 3.74 per cent, based on auction results released by the Monetary Authority of Singapore (MAS) on Thursday (Jun 20).
The previous auction, which closed on Jun 6, offered a 3.76 per cent yield.
Demand increased in the latest tranche, with applications totalling S$15.5 billion for the S$6.6 billion on offer. This represents a bid-to-cover ratio of 2.34.
In comparison, the previous auction had S$14.2 billion in applications for the S$7.1 billion on offer.
The median yield offered in the latest auction stood at 3.54 per cent, from 3.5 per cent in the previous auction, while the average yield declined to 3.08 per cent, from 3.15 per cent previously.
In the latest auction, about 83 per cent of non-competitive applications, totalling S$2.6 billion, were allocated.
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About 46 per cent of competitive applications at the cut-off yield were allocated.
T-bill yields hit a 30-year high of 4.4 per cent in December 2022, amid the high interest rate environment. Markets initially looked forward to more rate cuts this year, but have since dialled back on expectations due to persistently high inflation figures in the US.
