The cut-off yield for the latest 6-month Singapore T-bill on 13 March declined further to 2.56%. What happened? Like some investors in the Beansprout Telegram community, I was surprised by the result of the latest T-bill auction. The cut off yield for the 6-month Singapore T-bill (BS25105T) auction on 13 March declined further to 2.56% from 2.75% in the previous auction. This would represent the lowest yield on the 6-month Singapore T-bill since June 2022. In this post, I will look at what is driving the sharp fall in the T-bill yield, as well as some alternatives to consider to earn a higher interest rate. What we learnt from the latest 6-month Singapore T-bill auction #1 - Demand for the Singapore T-bill remains high The total applications for the 6-month Singapore T-bill was at S$19.8 billion, stable from S$20.1 billion in the previous auction. While demand has fallen slightly from the previous auction, this still represents the third-highest application...