Singapore’s 6-month Treasury bill yield drops amid lower Fed rate hike expectations

AGAINST a backdrop of heightened volatility in the global financial markets, Singapore’s latest six-month Treasury bill (T-bill) had a cut-off yield of 3.65 per cent when the auction closed on Thursday (Mar 16). This was the lowest since last September’s 3.32 per cent.

The allotment size was S$4.6 billion, with an oversubscription rate of about 2.8 times. The non-competitive applications – without specifying a yield – were fully allotted as these amounted to only S$837 million, well below the 40 per cent of allotment amount. Of the competitive applications at cut-off yield, 66 per cent were allotted.

The median yield was 3.58 per cent and the average yield was 3.41 per cent.