The auction has received S$16 billion in applications, representing a bid-to-cover ratio of 2.32
THE cut-off yield on the latest Singapore six-month Treasury bill (T-bill) fell to 3.34 per cent, auction results released by the Monetary Authority of Singapore on Thursday (Aug 15) indicated.
This is down from the 3.4 per cent offered in the previous six-month auction, which closed on Aug 1.
Demand fell in the latest tranche. The auction received a total of S$16 billion in applications for the S$6.9 billion on offer, representing a bid-to-cover ratio of 2.32.
In comparison, the previous auction received a total application of S$18 billion for the S$6.8 billion on offer.
The median yield in the latest auction stood at 3.2 per cent, from 3.3 per cent in the previous auction, while the average yield inched down to 2.83 per cent, from 2.85 per cent previously.
All non-competitive applications totalling S$2.4 billion were allocated in the latest auction. Meanwhile, about 30 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 the high-interest-rate environment.
Initially, markets looked forward to more rate cuts this year, but later dialled back expectations due to persistently high inflation figures in the US.
But with inflation rates falling towards the central bank’s 2 per cent target, US Federal Reserve chief Jerome Powell last month signalled that policymakers may lower their interest rates at their next meeting in September.
