What happened?

Many investors were hoping that we would see a rebound in the yield on the 6-month T-bill, after the yield on US government bonds climbed to the highest levels in 16 years recently. However, the cut-off yield on the latest 6-month T-bill auction (BS23117Z) on 31 August 2023 declined further to 3.70%. Source: MAS   This marks a further decline from the cut-off yield of 3.73% in the previous auction on 17 August. It would also be the second lowest cut-off yield for the Singapore 6-month T-bill auction so far this year. Only the auction on 16th March offered a lower yield of 3.65%. Let's take a deeper look at what might be some reasons driving the lower yield on the 6-month T-bill   Source: MAS  

What you need to know about the latest Singapore T-bill auction on 31 August

#1 – Demand for

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