Latest 6-month Treasury bill offers 3.85% cut-off yield
Add BT as a preferred source
Tan Nai Lun
THE cut-off yield on Singapore’s latest six-month Treasury bill (T-bill) has fallen to 3.85 per cent, in the auction that closed on Thursday (Jul 20).
The auction received a total of S$12.2 billion in applications for the S$5.6 billion on offer, representing a bid-to-cover ratio of 2.18.
The latest cut-off yield was markedly lower than that of the previous six-month tenor of the T-bills, which was at 3.99 per cent. The previous auction also saw fewer applications, at S$10.3 billion for the S$5.4 billion on offer.
DBS senior rates strategist Eugene Leow noted that liquidity is seasonally tighter around the mid-year, and that the situation has eased somewhat in the latest auction.
“It could also well be that investors are aware of the previous high cut-off of close to 4 per cent, and got incentivised to put money to work at the most recent auction,” he said.
In the latest auction, non-competitive bids totalled S$2.2 billion and were fully allotted.
Those who submitted competitive bids at the cut-off yield were allotted around 26 per cent of their applications. Those who specified a lower yield were fully allotted, and those who specified a higher yield were not allotted.
Last auction, those who submitted competitive bids at the cut-off yield were allotted just 2 per cent of their applications.
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Copyright SPH Media. All rights reserved.
TRENDING NOW
Palm oil stocks set to surge as Indonesia said to be scaling back export overhaul: analysts
Not in education, employment or training: Why more Hong Kong youths are opting out of work
Taiwan’s wealthy seeks diversification to Singapore, sparking private banking race: Bloomberg
Malaysian tycoon Vincent Tan’s sell-downs point to pruning rather than an exit plan
