Latest Singapore six-month T-bill cut-off yield down at 1.79%

[SINGAPORE] The cut-off yield on Singapore’s latest six-month Treasury bill (T-bill) fell to 1.79 per cent, based on auction results released by the Monetary Authority of Singapore on Thursday (Jul 17).

This is a decline from the 1.85 per cent offered in the previous six-month auction that closed on Jul 3. It is yet another low that yields have hit in the year to date, and marks the ninth consecutive issuance since Mar 26 for which yields have declined.

Demand for the latest tranche fell. The auction received a total of S$15.5 billion in applications for the S$7.6 billion offered, representing a bid-to-cover ratio of 2.04. In comparison, the previous auction received a total of S$16.1 billion in applications for the S$7.5 billion on offer, representing a bid-to-cover ratio of 2.15.

Median yield for the latest auction stood at 1.73 per cent, falling slightly from 1.76 per cent in the previous round. The average yield dropped to 1.6 per cent, from 1.64 per cent previously.

All non-competitive bids were allotted, amounting to S$1.2 billion, while around 44 per cent of competitive applications at the cut-off yield were allotted.

Singapore announced in November last year the issue of up to another S$450 billion in government securities. A parliamentary motion had been passed to raise the government’s issuance limit to S$1.515 trillion, up from S$1.065 trillion before.