Latest T-bill offers 3.99% cut-off yield

SINGAPORE’S latest six-month Treasury bills, also known as T-bills, offered a cut-off yield of 3.99 per cent – up from last month’s 3.89 per cent.

The Monetary Authority of Singapore’s (MAS) data, published on Thursday (Jul 6), showed that a total of S$5.4 billion was allotted out of the S$10.3 billion received in applications. The bid-to-cover ratio was 1.91.

DBS senior rates strategist Eugene Leow said that the short-term Singapore dollar rates have been “dragged up” by the increasingly hawkish market sentiment and factoring in more than one rate hike by the Federal Reserve.

However, he noted that demand for the T-bills appeared to be weakening, given the lower bid-to-cover ratio.

June’s issuance of the six-month T-bill had a bid-to-cover ratio of 1.98.

Those who submitted competitive bids at the cut-off yield were allotted only 2 per cent of their applications, markedly lower than last month’s, which granted applicants 74 per cent of the amount applied.

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Non-competitive bids were 96 per cent allotted, down from the 100 per cent last month. The total amount allotted to non-competitive bids this time was S$2.2 billion.

The median yield was 3.5 per cent, while the average yield was 2.87 per cent per annum.