https://www.straitstimes.com/business/banking/singapore-six-month-t-bill-cut-off-yield-drops-from-2-to-1-85
2025-07-03
SINGAPORE - The cut-off yield on Singapore’s latest six-month Treasury bill (T-bill) has tumbled to 1.85 per cent, based on auction results released by the Monetary Authority of Singapore on July 3.
This is a decline from the 2 per cent offered in the previous six-month auction that closed on June 19.
It is the lowest level that yields have hit in the year to date, and marks the eighth consecutive issuance since March 26 for which yields have declined.
T-bills are sold at a discount to their face value. The yield or interest is what you earn from purchasing the T-bill at a discount and holding it until maturity, when you receive the full face value. This is expressed as an annualised percentage.
Demand for the latest T-bill tranche rose slightly. The auction received a total of $16.1 billion in applications for the $7.5 billion on offer, representing a bid-to-cover ratio of 2.15.
In comparison, the previous auction received a total of $15.9 billion in applications for the $7.5 billion on offer, representing a bid-to-cover ratio of 2.13.
The median yield for the latest auction stood at 1.76 per cent, down slightly from 1.95 per cent in the previous round.
The average yield decreased to 1.64 per cent, from 1.88 per cent previously.
All non-competitive bids were allotted, amounting to $1.5 billion, while around 41 per cent of competitive applications at the cut-off yield were allotted.
Singapore will issue up to another $450 billion in government securities, with a parliamentary motion having been passed in November 2024 to raise the government’s issuance limit to $1.515 trillion, from $1.065 trillion previously. The new limit is expected to last until 2029. THE BUSINESS TIMES
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