SINGAPORE’S latest six-month Treasury bill (T-bill) closed its auction with a cut-off yield of 3.85 per cent on Thursday (Mar 30).

This was higher than the last auction, but demand was lower as investors factored in the impact of the banking crisis on interest rates and expressed a preference for instruments with a longer tenor.

The latest tranche of T-bills – which are risk-free fixed-income products backed by the Singapore government – was around 2.2 times subscribed for the S$4.3 billion allotment.