What happened?
The auction result for the latest 6-month Singapore T-bill came out later than usual today. This led some investors to speculate that the T-bill yield may be lower with an increase in demand. Indeed, the cut-off yield for the latest 6-month Singapore T-bill (BS23124S) fell to 3.74% from 3.8% in the previous auction. Let us find out what are the factors that are driving the decline in cut-off yield in the latest 6-month Singapore T-bill auction. Source: MAS
What we learnt from the latest Singapore T-bill auction
#1 – T-bill demand rises from previous issuance
The total amount of T-bill applications rose slightly compared to the previous auction. There were S$13.3 billion of applications for the latest 6-month T-bill, higher than the S$13.0 billion of applications in the previous auction. The amount of competitive bids remained high at S$10.8 billion, unchanged from the two previous auctions. However,…
