What happened?
The cut-off yield for the latest 6-month T-bill auction on 8 Jun 2023 was at 3.84% p.a. This is quite similar to the yield of 3.85% p.a. in the previous auction.
Even as the headline yield has not changed much, it was interesting to see that the amount of non-competitive bids rose sharply in the latest auction.
Let’s take a look to understand what this could mean for the upcoming T-bill auction.
Source: MAS
What we learnt from the latest T-bill auction
#1 – Increase in non-competitive bids for the 6-month T-bill despite fall in overall demand
The total amount of applications for the latest T-bill was at S$11.5 billion,
falling from S$12.2 billion in the previous auction. The decline in demand was seen largely for competitive bids, which fell to S$9.6 billion from S$10.8 billion in the previous auction. Surprisingly,
the amount of non-competitive bids...