What happened?
Many investors were looking out for the first 6-month T-bill auction of 2023 to identify any changes in demand as Singaporeans return from their year-end holidays. The cut-off yield for the T-bill auction on 5th January was at 4.2% p.a., slightly lower than the yield in the previous auction on 21 December of 4.28% p.a. This was despite a slight increase in global interest rates over the past two weeks. There were no major surprises in the latest T-bill auction, but we thought it is interesting that there has been a shift from making non-competitive to competitive bids. Let’s take a look at these trends in more detail. <img src="https://growbeansprout.com/strapi-uploads/image_38f01075e8.png" alt="Table Description automatically generated">
Source: MAS
What we learnt from the latest T-bill auction
#1 - Demand for T-bill remains high
The total amount of subscriptions rose slightly to $12.0 billion from $11.8 billion in the previous auction. ...
