Latest Singapore six-month T-bill cut-off yield slides to 2.2%

The auction received S$18.1 billion in applications for the S$7.5 billion on offer

The cut-off yield for Singapore’s latest six-month Treasury bill (T-bill) fell to 2.2 per cent, according to auction results released by the Monetary Authority of Singapore on Thursday (May 22).

This declined from the 2.3 per cent cut-off yield offered in the previous six-month auction that closed on May 7. It marks the fifth consecutive issuance where yields have declined, since Mar 26, and is the lowest level yields have hit in the year to date.

Demand for the latest tranche rose as the auction received S$18.1 billion in applications for the S$7.5 billion on offer, representing a bid-to-cover ratio of 2.41. This was up from the previous auction which received S$17.1 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 2.18 per cent, lower than the 2.24 per cent median yield in the previous round. Average yield dipped to 2.07 per cent from 2.09 per cent previously.

All non-competitive bids were allotted, with a total of S$1.5 billion, unchanged from the previous auction. For competitive applications, around 59 per cent were allotted at the cut-off yield, up from 23 per cent at the previous auction.

In November last year, the government passed a parliamentary motion to issue an additional S$450 billion in government securities, raising 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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