Demand is up slightly with S$15.6 billion in applications for the S$6.5 billion on offer
THE cut-off yield on the latest Singapore six-month Treasury bill (T-bill) fell to 3.7 per cent, according to auction results released by the Monetary Authority of Singapore on Thursday (Jul 4).
Cut-off yield is down from the 3.74 per cent offered in the previous six-month auction, which closed on Jun 20.
Demand rose slightly in the latest tranche. The auction received a total of S$15.6 billion in applications for the S$6.5 billion on offer, representing a bid-to-cover ratio of 2.4.
In comparison, the previous auction received total applications of S$15.5 billion for the S$6.6 billion on offer.
Median yield in the latest auction stood at 3.4 per cent, from 3.54 per cent in the previous auction, while the average yield fell to 2.81 per cent, from 3.08 per cent previously.
In the latest auction, about 70 per cent of non-competitive applications, totalling S$2.6 billion, were allocated.
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Meanwhile, about 25 per cent of competitive applications at the cut-off yield were allotted. Those who specified a lower yield were fully allotted, and those who specified a higher yield were not.
T-bill yields hit a 30-year high of 4.4 per cent in December 2022, amid the high interest rate environment.
Markets initially looked forward to more rate cuts this year, but later dialled back on expectations due to persistently high inflation figures in the US.
Nevertheless, latest comments from US Federal Reserve chair Jerome Powell leaned dovish, when he suggested that disinflation was on track.
