What happened? The 1-year T-bill (BY23100X) auction on 26 January 2023 has been widely anticipated by investors, because it is not often that we see an auction for the 1-year T-bill. However, some were disappointed when the cut-off yield for the auction turned out to be 3.87% p.a. Earlier, we have seen the same result for the 6-month T-bill auction on 18 January, when there were a significant number of bids made at a very low yield. Let’s dig deeper to find out if we can find out what is driving the lower yield, and what we can do if we are unable to get the 1-year T-bill this time. Source: MAS What we learnt from the latest 1-year T-bill auction

#1 – Higher demand for 1-year bill

There were more subscriptions for the 1-year T-bill in this auction compared to the previous auction in October 2022....