SINGAPORE’S latest one-year tranche of Treasury bills (T-bill) is offering a cut-off yield of 3.58 per cent, according to auction results released on Thursday (Apr 18).
Yields rose from the last offering of the one-year tranche in January 2023, which had a cut-off yield of 3.45 per cent.
Meanwhile, the latest six-month tranche of the bills, which closed on Apr 11, offered a cut-off yield of 3.75 per cent.
A total of S$10.1 billion in applications were made for a total amount allotted of S$5.1 billion, which puts the bid-to-cover ratio at 1.97.
This is lower than the bid-to-cover ratio of 3.19 at the previous one-year T-bill auction in January, in which there were S$14.4 billion in applications for S$4.5 billion on offer.
Yield on the T-bills hit a 30-year high of 4.4 per cent in December 2022, but it has hovered mostly around the 3.7 to 3.8 per cent range since March 2023.
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Expectations of potential interest rate cuts were dampened after the US posted its third higher-than-expected inflation reading on Apr 10.
Demand for T-bills remains strong as they continue to yield higher returns amid the high interest rate environment.
