Cut-off yield on latest Singapore 6-month T-bill falls to 3.64%

THE cut-off yield on the latest Singapore six-month Treasury bill (T-bill) fell to 3.64 per cent, based on auction results released by the Monetary Authority of Singapore on Thursday (Jul 18).

This was a 0.1 percentage point drop from the 3.74 per cent offered in the previous six-month auction, which closed on Jul 4.

Demand was slightly muted in the latest tranche, which garnered a total of S$15.7 billion in applications for the S$6.8 billion on offer, representing a bid-to-cover ratio of 2.3.

The previous auction received S$15.6 billion in applications for the S$6.5 billion on offer, representing a bid-to-cover ratio of 2.4.

The median yield in the latest auction stood at 3.5 per cent, up from 3.4 per cent in the previous auction. Average yield, meanwhile, rose to 2.97 per cent from 2.81 per cent previously.

Around 82 per cent of non-competitive applications totalling S$2.7 billion were allocated in the latest auction. Some 83 per cent of competitive applications were allotted at the cut-off yield.

T-bill yields hit a 30-year high of 4.4 per cent in December 2022 amid a high interest rate environment. Initially, markets looked forward to more rate cuts in 2024, but tempered their expectations due to persistently high US inflation figures.