The Singapore 6-month T-bill’s cut-off yield reached 3.85% in the latest auction, higher than the yield of 3.78% in the previous auction. What happened? Many investors were happy to learn that the cut-off yield for the latest 6-month T-bill auction on 25 May 2023 rose to 3.85% p.a. The increase in the T-bill yield is in contrast to the fall in fixed deposit rates we have seen recently. Let’s take a look to understand what led is driving the higher cut-off yield for the 6-month T-bill. Source: MAS What we learnt from the latest T-bill auction #1 – Increase in applications for the 6-month T-bill The total amount of applications for the latest T-bill was at S$12.2 billion, rising from S$12.0 billion in the previous auction. The increase in demand was seen across both competitive and non-competitive bids. The amount of competitive bids increased to S$10.8 billion from S$10.7 billion in the previous auction....