What happened?
Some investors were disappointed that the cut-off yield on the latest T-bill auction on 18 January 2023 fell further to 4.0% p.a. This was lower than the 4.2% p.a.in the previous auction on 5 Jan 2023. Apart from the lower cut-off yield, what surprised us the most was the very sharp fall in average yield for the latest auction. Let’s take a further look at the auction results to see what might be the reasons driving the decline, and if there might be any implications for the upcoming T-bill auctions. <img src="https://growbeansprout.com/strapi-uploads/image_4e7d00e8cd.png" alt="Table Description automatically generated"> Source: MAS
What we learnt from the latest T-bill auction
#1 – Demand for T-bill rises again
Demand for T-bills has picked up in January, after the seasonal decline in December. The total amount of applications for the latest T-bill rose to S$13.1 billion from S$12.0 billion in the previous auction...
