#1 – Demand for T-bills falls further
Quite clearly, there were less investors who were interested in the T-bills this time. The total amount of subscriptions fell to S$9.3 billion from $11.9 billion in the previous auction. This is way lower than the S$14.2 billion of subscriptions on 10 November. It’s also interesting to note that this would be the second...In the latest auction on 8 December, the cut-off yield on the Singapore 6-month T-bill surprisingly jumped to 4.4% p.a.
What happened?
The market always like to throw us surprises.
Just when many investors thought that they would never see the yield on the 6-month T-bill return to above 4%, it reached 4.4% p.a. in the latest auction on 8 December.
This eye-popping yield on the 6-month T-bill is even above its recent peak of 4.19% p.a.
We decided to take a closer look into what is driving the bond yields higher.
Source: MAS
What we learnt from the latest T-bill auction
