Cut-off yield on latest Singapore 6-month T-bill rises to 3.76%

THE latest Singapore six-month Treasury bill (T-bill) is offering a cut-off yield of 3.76 per cent, up from the 3.65 per cent offered in the previous six-month auction.

Demand continued to fall in the latest tranche that closed on Thursday (Jun 6). Applications totalled S$14.2 billion for the S$7.1 billion on offer, representing a bid-to-cover ratio of two.

In comparison, the previous auction that closed on May 23 had S$14.5 billion in applications for the S$7 billion on offer.

The median yield offered in the latest auction stood at 3.5 per cent, from 3.48 per cent in the previous auction, while the average yield rose to 3.15 per cent, from 3.04 per cent previously.

In the latest auction, about 91 per cent of non-competitive applications, totalling S$2.8 billion, were allocated. About 25 per cent of competitive applications at the cut-off yield were allotted.

T-bill yields hit a 30-year high of 4.4 per cent in December 2022 amid the high interest rate environment, and have mostly hovered above 3.7 per cent since.

Markets initially looked forward to more rate cuts this year, but have since dialled back on expectations due to persistently high inflation figures in the US.