#1 – Fall in demand for T-bills
Firstly, it is clear that the level of subscriptions for T-bills came down this auction. The total amount of subscriptions fell to S$11.9 billion from S$14.2 billion in the previous auction. The amount of non-competitive bids came down to about S$2.5 billion from S$3.6 billion in the previous auction. That’s a decline of about S$1.1 billion....What happened?
There’s something that investors in Singapore have been looking out closely for in recent weeks.
And no, it’s not the World Cup.
Many in the Beansprout community were eagerly awaiting the latest 6-month T-bill auction, especially after the yield came down in the previous auction.
Disappointingly, the yield came down further to 3.9% p.a. in the latest auction on 24 November (BS22123S).
We decided to take a closer look into why the yield has continued to decline.
Source: MAS
What we learnt from the T-bill auction results
