Will SVB’s collapse drive down the T-bill yield in the auction on 16 March?
What happened?
The collapse of Silicon Valley Bank (SVB) in the US has been making the news headlines as the largest bank failure since the global financial crisis.
This has impacted the share prices of stocks in the financial sector, including index heavyweights such as JP Morgan and Charles Schwab.
However, another important development is that US government bond yields have fallen sharply, as investors seek to put their money in safer assets.
Let us take a look as to whether this may also cause a sharp fall in the yield of the upcoming 6-month T-bill auction (BS23105W) on 16 March 2023.
Source: MAS
