THE cut-off yield for Singapore’s latest six-month Treasury bill (T-bill) fell to 2.75 per cent, based on auction results released by the Monetary Authority of Singapore on Thursday (Feb 27).
This was down from the 2.9 per cent offered in the previous six-month auction that closed on Feb 13.
Demand for the latest tranche fell as the auction received a total of S$20.1 billion in applications for the S$7.5 billion on offer, representing a bid-to-cover ratio of 2.69.
By comparison, the previous auction received a total of S$23.3 billion in applications for the S$7.3 billion on offer, representing a bid-to-cover ratio of 3.19.
Median yield for the latest auction stood at 2.69 per cent, down from 2.78 per cent in the previous auction.
Average yield slipped to 2.36 per cent, from 2.52 per cent previously.
All non-competitive bids were allotted, amounting to S$2.8 billion, while around 4 per cent of competitive applications at the cut-off yield were allotted.
Singapore will issue up to another S$450 billion in government securities, with a parliamentary motion having been passed in November last year to raise the government’s issuance limit to S$1.515 trillion, from S$1.065 trillion previously. The new limit is expected to last until 2029.
Copyright SPH Media. All rights reserved.
