Latest Singapore six-month T-bill cut-off yield drops to 2.9%

THE cut-off yield for Singapore’s latest six-month Treasury bill (T-bill) fell to 2.9 per cent, based on auction results released by the Monetary Authority of Singapore on Thursday (Feb 13).

This was down from the 3.04 per cent offered in the previous six-month auction that closed on Jan 28.

Demand for the latest tranche rose as the 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.

By comparison, the previous auction received a total of S$15.3 billion in applications for the S$7.2 billion on offer, representing a bid-to-cover ratio of 2.13.

Median yield for the latest auction stood at 2.78 per cent, down from 2.97 per cent in the previous auction.

Average yield dropped to 2.52 per cent, from 2.69 per cent previously.

About 80 per cent of non-competitive bids were allotted, amounting to S$2.9 billion, while around 29 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.

More than 60 per cent of the S$450 billion increase is expected to be issued as Special Singapore Government Securities to meet the investment needs of the Central Provident Fund. The rest of the increase is for projected issuances of Singapore Government Securities (Market Development), Singapore Savings Bonds and T-bills.

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