What happened?
Some investors were looking at the latest 6-month T-bill auction to find out if there would be a significant surge in demand after DBS allowed T-bill applications using CPF-OA via internet banking (i-banking). The cut-off yield on the latest T-bill auction on 2 February 2023 fell further to 3.88% p.a. from 4.0% p.a.in the previous auction. However, there was no significant change in total amount of applications for the latest 6-month T-bill compared to the previous auction. Source: MAS
What we learnt from the latest T-bill auction
#1 – Demand appears unchanged from previous auction
The total amount of applications for the latest T-bill was at S$12.9 billion, which is quite similar to the applications in the previous auction. It would appear that the ability of DBS customers to now apply for T-bills using CPF-OA via i-banking has not led to a significant increase in the amount...
