[SINGAPORE] The cut-off yield for Singapore’s latest six-month Treasury bill (T-bill) fell to 2.3 per cent, according to auction results released by the Monetary Authority of Singapore on Monday (May 7).
This declined from the 2.38 per cent cut-off yield offered in the previous six-month auction that closed on Apr 24, marking the fourth consecutive issuance in which yields have fallen since Mar 26.
Demand for the latest tranche rose slightly as the auction received S$17.1 billion in applications for the S$7.4 billion on offer, representing a bid-to-cover ratio of 2.32. This was up from the previous auction which received S$16.6 billion in applications for the S$7.4 billion on offer, translating to a bid-to-cover ratio of 2.24.
Median yield for the latest auction stood at 2.24 per cent, lower than the 2.32 per cent median yield in the previous round. Average yield fell to 2.09 per cent, down from 2.16 per cent previously.
All non-competitive bids were allotted, with a total of S$1.5 billion, compared with S$1.4 billion in the previous auction. For competitive applications, around 23 per cent were allotted at the cut-off yield, up from 17 per cent at the previous auction.
In November last year, the government had passed a parliamentary motion to issue an additional S$450 billion in government securities, raising the government’s borrowing 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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