Latest Singapore six-month T-bill cut-off yield falls to 1.38%

Auction receives a total of S$15.7 billion in applications for the S$7.8 billion on offer, representing a bid-to-cover ratio of 2.02

The cut-off yield on Singapore’s latest six-month Treasury bill (T-bill) fell to 1.38 per cent, based on auction results released by the Monetary Authority of Singapore on Thursday (Sep 11).

This was a decrease from the 1.44 per cent offered in the previous six-month auction that closed on Aug 28.

It marks the lowest level that yields have hit in the year to date, and the 13th consecutive issuance since Mar 26 for which yields have declined.

The auction received a total of S$15.7 billion in applications for the S$7.8 billion on offer, representing a bid-to-cover ratio of 2.02.

In comparison, the previous auction received a total of S$18.4 billion in applications for the S$7.7 billion on offer, which translated to a 2.39 bid-to-cover ratio.

The median yield for the latest auction stood at 1.31 per cent, down from 1.39 per cent previously.

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The average yield fell to 1.27 per cent, from 1.3 per cent in the previous auction.

All non-competitive bids were allotted, amounting to S$1.2 billion, while around 65 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.