Latest Singapore six-month T-bill cut-off yield slips to 3%

This is down from the 3.08% offered in the previous auction that closed on Nov 21

THE cut-off yield on Singapore’s latest six-month Treasury bill (T-bill) fell to 3 per cent, auction results released by the Monetary Authority of Singapore on Thursday (Dec 5) showed.

This was down from the 3.08 per cent offered in the previous six-month auction that closed on Nov 21.

Demand for the latest tranche rose. The auction received a total of S$17.4 billion in applications for the S$7.1 billion on offer, representing a bid-to-cover ratio of 2.45.

In comparison, the previous auction received S$13.7 billion in applications for the S$7 billion on offer, representing a bid-to-cover ratio of 1.96.

Median yield for the latest auction stood at 2.9 per cent, down from 2.95 per cent in the previous auction.

Average yield decreased to 2.73 per cent, from 2.76 per cent previously.

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Non-competitive bids totalled S$2.4 billion and were fully allotted. About 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 after a parliamentary motion was passed in November 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 anticipated 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 Savings Bonds, T-bills and Singapore Government Securities (Market Development).

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