What happened?

The next 6-month Singapore T-bill auction (BS26120W) will be on 8 October. The previous auction on 24 September saw the cut-off yield for the 6-month Singapore T-bill rise sharply to 1.92%, from 1.70% in the auction on 10 September. Since then, shorter-term Singapore yields have remained relatively elevated, while US government bond yields have continued to move higher after the US Federal Reserve raised interest rates for the first time since 2023. This has led to more discussion in the Beansprout community about whether the 6-month T-bill yield could remain around current levels or move even higher in the upcoming auction. In this article, I’ll look at some of the latest indicators to help us understand what the upcoming cut-off yield might be. Source: MAS

Here's what to expect for the Singapore T-bill auction on 8 October

#1 – US 10-year government bond yields rose sharply

The...