Latest Singapore six-month T-bill cut-off yield rises to 2.73%

[SINGAPORE] The cut-off yield for Singapore’s latest six-month Treasury bill (T-bill) rose to 2.73 per cent, the auction results by the Monetary Authority of Singapore on Wednesday (Mar 26) showed.

This was up from the 2.56 per cent offered in the last six-month auction that closed on Mar 13. 

Demand for the latest tranche dipped. The auction received S$15.8 billion in applications for the S$7.4 billion on offer, representing a bid-to-cover ratio of 2.14.

In comparison, the previous auction received S$19.8 billion in applications for the S$7.5 billion on offer, marking a bid-to-cover ratio of 2.64. 

Median yield for the latest auction was 2.6 per cent, up from 2.5 per cent in the previous one.

Average yield climbed to 2.54 per cent, from 2.41 per cent previously.

All non-competitive bids were allotted, amounting to S$1.4 billion, while only around 3 per cent of competitive applications at the cut-off yield were allotted.

Singapore will issue up to another S$450 billion in government securities, with a parliamentary motion having been passed in November last year to raise the government’s issuance limit to S$1.515 trillion, from S$1.065 trillion previously.

The new limit is expected to last until 2029.