Yield for latest Singapore Treasury bill falls to 3.9% as more go for competitive bids

AS THE proportion of non-competitive applications shifted in favour of competitive bids with a specified yield, the cut-off yield on the latest Singapore six-month Treasury bill (T-bill) fell to 3.9 per cent on Thursday (Nov 24), from 4 per cent a fortnight ago.

The risk-free, fixed-income product by the Singapore government was 2.5 times subscribed for the S$4.8 billion allotment – the highest in the year to date for T-bills of this tenor.

However, the value of non-competitive applications stood at S$2.4 billion, or 50.8 per cent of the total allotment. The S$2.4 billion value was also lower than the S$3.6 billion (80.5 per cent of the total allotment) recorded in the last auction.