MAS has announced a cut-off yield of 4% for the latest t-bill (issuance date 15th November 2022), a drop from the previous t-bill which had a yield of 4.19% p.a. US Federal Reserve approved yet another rate hike recently, so this drop is rather surprising. A testament to the popularity of t-bills, applicants applied for a total of $14.2 billion. MAS even had to delay the auction results, citing a high volume of applications. I thought such a process would more or less be automated, but now I’m imagining overworked interns at MAS scrambling to push out the auction results. How does bidding work? From Singapore Savings Bonds to t-bills, the interest in government securities has been rising owing to, well, rising interest rates. T-bills, in particular, now have the spotlight after hitting a 34-year high of 4.19% p.a. The cut-off yield for t-bills are derived from an auction process. Applicants can choose to put either non-competitive bids, or competitive ones....