All non-competitive applications totalling S$2.1 billion have been allocated in the latest auction
THE cut-off yield on Singapore’s latest six-month Treasury bill (T-bill) dropped to 3.13 per cent, down from the 3.34 per cent offered in the previous six-month auction that closed on Aug 15.
Auction results released by the Monetary Authority of Singapore on Thursday (Aug 29) showed that demand held relatively steady in the latest tranche. It received a total of S$16 billion in applications for the S$6.8 billion on offer, representing a bid-to-cover ratio of 2.35.
This was in comparison to the previous auction, which received a total of S$16 billion in applications for S$6.9 billion on offer.
Median yield for the latest auction stood at 3 per cent, down from 3.2 per cent in the previous auction. Average yield fell to 2.62 per cent from 2.83 per cent previously.
All non-competitive applications totalling S$2.1 billion were allocated in the latest auction. There were no competitive applications allotted at the cut-off yield.
On Wednesday, Federal Reserve Bank of Atlanta President Raphael Bostic said that while it may be “time to move” on rate cuts, he wants to see confirmation from upcoming inflation and jobs data that the economic trends are continuing.
Bostic’s cautious comments come less than a week after Fed Chair Jerome Powell on Aug 23 stated that “the time has come” for the US central bank to cut interest rates.
Policymakers are expecting to cut rates on Sep 18.
