What happened? Many investors were eagerly awaiting the result of the first Singapore T-bill auction in 2024. The cut-off yield for the 6-month Singapore T-bill (BS24100F) was at 3.74%, little changed from the yield of 3.73% in the previous auction. This may come as a surprise to many, as US government bond yields have fallen sharply in recent weeks. Let us find out why the Singapore T-bill yield has remained high. Source: MAS What we learnt from the latest Singapore T-bill auction #1 – Demand for Singapore T-bill remains strong The total amount of T-bill applications was at S$12.8 billion, unchanged from the previous auction. The amount of non-competitive bids rose to S$2.4 billion from S$2.2 billion in the previous auction. Eligible non-competitive bids were able to get 100% allocation in the latest T-bill auction, as the amount of non-competitive bids was within the allocation limit. The amount of competitive bids fell slightly to S$10.4 billion from S$10.6 billion in the previous auction....