The median yield in the latest auction stands at 3.16%, from 3.4% in the previous auction
THE cut-off yield on Singapore’s latest one-year Treasury bill (T-bill) is offering a cut-off yield of 3.38 per cent, indicated auction results released by the Monetary Authority of Singapore (MAS) on Thursday (Jul 25).
This is down 0.2 percentage point from the 3.58 per cent offered in the auction for the previous one-year tranche in April.
Demand for the latest tranche rose, with a total of S$15 billion in applications for the S$5.1 billion on offer, which represents a bid-to-cover ratio of 2.95.
In the previous one-year tranche, applications totalled S$10.1 billion for the S$5.1 billion on offer.
The median yield in the latest auction stood at 3.16 per cent, from 3.4 per cent in the previous auction, while the average yield fell to 2.84 per cent, from 3.28 per cent previously.
In the latest auction, non-competitive applications, totalling S$1.5 billion, were fully allocated.
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About 96 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.
T-bill yields hit a 30-year high of 4.4 per cent in December 2022, amid the high interest rate environment.
Yields have fallen in recent months, as markets price in interest rate cuts by the US Federal Reserve some time this year.
