[SINGAPORE] The cut-off yield for Singapore’s latest six-month Treasury bill (T-bill) dropped to 2.05 per cent, based on auction results released by the Monetary Authority of Singapore on Thursday (Jun 5).
This was a decline from the 2.2 per cent cut-off yield offered in the previous six-month auction that closed on May 22.
It was the lowest level that yields have hit in the year to date and marked the sixth consecutive issuance since Mar 26 for which yields have declined.
Demand for the latest tranche fell as the auction received S$17.9 billion in applications for the S$7.6 billion on offer, representing a bid-to-cover ratio of 2.35.
This was down from the previous auction, which received S$18.1 billion in applications for the S$7.5 billion on offer, translating to a bid-to-cover ratio of 2.41.
The median yield for the latest auction stood at 1.99 per cent, lower than the 2.18 per cent median yield in the prior round. Average yield dropped to 1.9 per cent from 2.07 per cent previously.
In November last year, the government passed a parliamentary motion to issue an additional S$450 billion in government securities, raising its issuance limit to S$1.515 trillion, from S$1.065 trillion previously. The new limit is expected to be in force until 2029.
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