[SINGAPORE] The cut-off yield for Singapore’s latest six-month Treasury bill (T-bill) tumbled to 2.5 per cent, the auction results by the Monetary Authority of Singapore on Thursday (Apr 10) showed.
This marked a drop from the 2.73 per cent cut-off yield offered in the previous six-month auction that closed on Mar 26.
Demand for the latest tranche grew as the auction received S$17.2 billion in applications for the S$7.4 billion on offer, representing a bid-to-cover ratio of 2.32.
In comparison, the previous auction received S$15.8 billion in applications for the S$7.4 billion on offer, translating to a bid-to-cover ratio of 2.14.
Median yield for the latest auction stood at 2.4 per cent, lower than the 2.6 per cent median yield in the previous one.
Average yield declined to 2.1 per cent from 2.54 per cent previously.
All non-competitive bids were allotted, amounting to S$1.6 billion, which is an increase from S$1.4 billion in the last auction.
Meanwhile, only around 9 per cent of competitive applications at the cut-off yield were allotted, though this was up from 3 per cent at the previous auction.
Singapore will issue up to another S$450 billion in government securities, with a parliamentary motion having been passed in November last year to raise the government’s issuance limit to S$1.515 trillion, from S$1.065 trillion previously. The new limit is expected to last until 2029.
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