This is up from 2.71% offered in the previous auction that closed in October last year
SINGAPORE’S latest one-year tranche of Treasury bills (T-bills) is offering a cut-off yield of 2.95 per cent, auction results released by the Monetary Authority of Singapore indicated on Thursday (Jan 23).
This is up 0.24 percentage point from the 2.71 per cent offered in the auction for the previous one-year tranche in October last year.
Eugene Leow, head of fixed income research at DBS, said that T-bill rates are no longer declining as the prospect of imminent rate cuts by the Federal Reserve gets pushed back amid firm US data.
“We suspect that investors have a certain hurdle rate for investing in T-bills that is around 3 per cent.”
The latest auction received a total of S$10.1 billion in applications for the S$5.4 billion on offer, representing a bid-to-cover ratio of 1.87.
In comparison, the previous auction received S$14.7 billion in applications for the S$5.2 billion on offer.
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Median yield in the latest auction stood at 2.83 per cent, up from 2.6 per cent in the previous auction.
Average yield increased to 2.72 per cent, from 2.47 per cent previously.
Non-competitive bids totalled S$691.5 million and were fully allotted.
About 64 per cent of competitive applications at the cut-off yield were allotted. Those who specified a lower yield were fully allotted, and those who specified a higher yield were not.
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