#1 – Total amount of applications for T-bills fell
The total amount of applications for the latest T-bill was at S$12.7 billion, falling from $13.0 billion in the previous auction. It would appear that the end of the OCBC promotion offering 8-month fixed deposit at a rate of 3.88% p.a. for CPF funds did not lead to a significant increase in demand for T-bills. The total amount of competitive bids fell to $11.9 billion from $12.3 billion in the previous auction....What happened?
The cut-off yield for the latest Singapore 6-month T-bill auction (BS23105W) on 16 March 2023 fell to 3.65% p.a.
This led to disappointment amongst some investors, some of whom were expecting the yield could potentially rise above 4.0% p.a.
Let’s take a look and find out what led to such a sharp decline in the bond yields in the latest Singapore 6-month T-bill auction.
Source: MAS
What we learnt from the latest T-bill auction
