Figure is down from the 1.68% offered in the auction for the previous one-year tranche in July
[SINGAPORE] The cut-off yield on the Republic’s latest one-year Treasury bill (T-bill) fell to 1.35 per cent, based on auction results released by the Monetary Authority of Singapore on Wednesday (Oct 15).
This was a drop from the 1.68 per cent offered in the previous one-year auction that closed on Jul 24.
The auction received a total of S$13.1 billion in applications for the S$5.8 billion on offer, representing a bid-to-cover ratio of 2.26.
In comparison, the previous auction received a total of S$11.3 billion in applications for the S$5.5 billion on offer, which worked out to 2.05 for the bid-to-cover ratio.
The median yield for the latest auction stood at 1.2 per cent, down from 1.6 per cent in the previous auction.
The average yield fell to 1.16 per cent, from 1.44 per cent previously.
SEE ALSO
All non-competitive bids were allotted, amounting to S$361.7 million, while around 86 per cent of competitive applications at the cut-off yield were allotted.
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.
