Latest 6-month Singapore T-bill offers 3.78% cut-off yield

SINGAPORE’S latest six-month Treasury bill (T-bill) closed its auction with a cut-off yield of 3.78 per cent on Thursday (May 11).

The latest yield on the government-backed, risk-free fixed-income product was down from the 3.83 per cent offered in the previous auction.

Demand inched up from the previous auction – the latest tranche was 2.4 times subscribed, and received S$12 billion in applications for the S$5 billion on offer.

In comparison, the previous six-month tranche received S$11.1 billion in applications for the S$5 billion on offer.

In the latest issuance, non-competitive bids totalled S$1.3 billion and were fully allotted.

Those who submitted competitive bids at the cut-off yield were allotted around 23 per cent of their applications. Meanwhile, those who specified a lower yield were fully allotted, and those who specified a higher yield were not allotted.

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Singapore’s T-bills attracted strong investor interest last year as their yield hit a 30-year high of 4.4 per cent for the six-month tenor in December, on the back of rising interest rates globally. Demand has since fallen in tandem with yields.