Cut-off yield on latest Singapore 6-month T-bill at 3.7%

SINGAPORE’S latest six-month Treasury bill (T-bill) offered a cut-off yield of 3.7 per cent, in the auction that closed on Thursday (Aug 31).

This is compared with the 3.73 per cent offered in the previous T-bill with a six-month tenor, continuing the downward trend of the cut-off yields.

Demand for T-bills also fell in the latest auction, with a total of S$11.2 billion in applications for the S$5.5 billion on offer.

The previous auction for the six-month tenor received S$11.8 billion in applications for the S$5.6 billion on offer.

In the latest auction, non-competitive bids totalled S$1.6 billion and were fully allotted.

Those who submitted competitive bids at the cut-off yield were allotted around 29 per cent of their applications. Those who specified a lower yield were fully allotted, and those who specified a higher yield were not allotted.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

In a report on Wednesday, UOB’s global economics and markets research team said bond yields will likely exhibit a more obvious drift lower, towards the end of 2023.

The team said it has a more dovish trajectory for future Fed funds rate compared with current market pricing.

“The balance of risk will increasingly tilt in favour of slowing economic growth, growing rate cut expectations, and richer safe-haven premiums consequentially.”