Singapore 6-month T-bill cut-off yield stays flat at 1.44% after turnaround at previous auction

This is unchanged from the 1.44 per cent offered in the last six-month auction that closed on Sep 25

The cut-off yield on Singapore’s latest six-month Treasury bill (T-bill) stood at 1.44 per cent, according to on auction results released by the Monetary Authority of Singapore on Thursday (Oct 9).

This was unchanged from the 1.44 per cent offered in the last six-month auction that closed on Sep 25 – where the cut-off yield rose for the first time after falling for 13 consecutive issuances since Mar 26.

The latest auction received a total of S$14.8 billion in applications for the S$7.8 billion on offer, representing a bid-to-cover ratio of 1.9.

In comparison, the previous auction received a total of S$13.5 billion in applications for the S$7.7 billion on offer, which translated to a 1.75 bid-to-cover ratio.

The median yield for the latest auction rose to 1.38 per cent from 1.33 per cent in the previous auction.

The average yield climbed to 1.29 per cent from 1.23 per cent previously.

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All non-competitive bids were allotted, amounting to S$1.2 billion, while around 74 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 last 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.