Latest Singapore six-month T-bill cut-off yield falls to 2.38%

Demand shrinks with the auction receiving S$16.6 billion in applications for the S$7.4 billion on offer

The cut-off yield for Singapore’s latest six-month Treasury bill (T-bill) fell to 2.38 per cent, the auction results by the Monetary Authority of Singapore on Thursday (Apr 24) showed.

This marked a decline from the 2.5 per cent cut-off yield offered in the previous six-month auction that closed on Apr 10. It is also the lowest level that cut-off yields of six-month T-bills have fallen to in the year to date.

Demand for the latest tranche shrank as the auction received S$16.6 billion in applications for the S$7.4 billion on offer, representing a bid-to-cover ratio of 2.24.

In comparison, the previous auction received S$17.2 billion in applications for the S$7.4 billion on offer, translating to a bid-to-cover ratio of 2.32.

Median yield for the latest auction stood at 2.32 per cent, lower than the 2.4 per cent median yield of the previous round.

Average yield rose marginally to 2.16 per cent from 2.1 per cent previously.

All non-competitive bids were allotted, amounting to S$1.4 billion, compared with S$1.6 billion in the last auction.

Meanwhile, around 17 per cent of competitive applications at the cut-off yield were allotted, up from 9 per cent at the previous auction.

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.

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