The cut-off yield on the latest 6-month Singapore T-bill auction on 17 August declined further to 3.73%. What happened? The cut-off yield on the latest 6-month T-bill auction (BS23116F) on 17 August 2023 has fallen further to 3.73%. Source: MAS This represents a slight decline from the cut-off yield of 3.75% in the previous auction on 3 August. It also marks the lowest cut-off yield for the 6-month T-bill since March this year, when it was at 3.65%. Source: MAS Let us find out what might be some reasons driving the lower yield on the 6-month T-bill.

What we learnt from the latest T-bill auction

#1 – Demand for T-bills fell compared to the previous auction

The total amount of applications for the latest T-bill was at S$11.8 billion, a decline from S$12.3 billion in the previous auction. Applications for both competitive and non-competitive bids fell compared to the previous auction. The amount of non-competitive bids fell to S$1.6 billion from S$1.9 billion in the previous auction....