Cut-off yield on latest Singapore 6-month T-bill falls to 3.75%

THE cut-off yield on Singapore’s latest six-month Treasury bill (T-bill) has fallen to 3.75 per cent in the auction that closed on Thursday (Aug 3).

The cut-off yield continued its downtrend from the previous six-month tenor of the T-bills, which offered a cut-off yield of 3.85 per cent.

Demand for the latest auction rose slightly. The auction, which had S$5.5 billion on offer, received total applications of S$12.3 billion, representing a bid-to-cover ratio of 2.24.

The previous six-month tenor of the T-bills received a total of S$12.2 billion in applications for the S$5.6 billion on offer.

Eugene Leow, senior rates strategist at DBS, noted that liquidity conditions are becoming more normal, resulting in somewhat lower short-term Singapore dollar rates.

“That said, downside might be limited if the US Federal Reserve keeps rates steady for some time amid resilient data,” he said.

SEE ALSO

Yields for 12-month T-bill rebounds to 3.74% in July

Latest 6-month Treasury bill offers 3.85% cut-off yield

Asean Intelligence

Get insights into businesses across South-east Asia

Get the free report

In the latest auction, non-competitive bids totalled S$1.9 billion and were fully allotted.

Those who submitted competitive bids at the cut-off yield were allotted around 65 per cent of their applications. Those who specified a lower yield were fully allotted, and those who specified a higher yield were not allotted.

In July, the latest 12-month tenor of the T-bills closed its auction with a cut-off yield of 3.74 per cent. Some S$4.4 billion in 12-month T-bills were allotted, out of a total of S$9.3 billion applied.