Latest Treasury bill yields 4.28% in Singapore’s last auction for 2022

IN THE last six-month Treasury bill (T-bill) issuance of the year, the cut-off yield managed to stay above 4 per cent, at 4.28 per cent when auction closed on Wednesday (Dec 21).

The risk-free fixed income security with an allotment size of S$4.4 billion had a bid-to-cover ratio of 2.7, meaning it was 2.7 times subscribed. Bidders who put in a non-competitive bid were all fully allotted, while competitive bidders with a bid at cut-off yield managed to get 80 per cent of their applications fulfilled.

Eugene Leow, DBS senior rates strategist, said that T-bill rates will probably be somewhat buoyant in the coming few months, as the Federal Reserve is likely to deliver a few more hikes in early 2023 before a pause takes hold. However, the MAS bills auctions have shown that short-term Singapore dollar (SGD) rates are moderating.