Yields on the bills are determined via competitive auctions in a market that comprises individuals and institutions from Singapore and overseas, and therefore reflect the general level and direction of interest rates in global markets, said Finance Minister Lawrence Wong.
This was in a response to parliamentary questions on T-bill interest rates on Tuesday.
Wong noted that retail demand for T-bills have strengthened in the past two years, as yields on T-bills increased alongside comparable instruments such as US Treasuries amid rising interest rates.
Allotments to retail investors have grown from around 13 per cent of each issuance in 2022, to around 46 per cent of each issuance in 2024, he said.
Non-competitive applications totalled S$2.4 billion and were fully allotted in the latest auction.
Around 9 per cent of competitive applications at the cut-off yield were allotted. Those who specified a lower yield were fully allotted, and those who specified a higher yield were not allotted.
