Singapore's 6-Month T-Bill Yield Rebounds to 3.73%

17 Sep, 2023

Singapore's 6-Month T-Bill Yield Rebounds to 3.73%

The most recent issuance of Singapore's six-month T-bills, overseen by the Monetary Authority of Singapore, has recorded an interest rate of 3.73%. This marks a slight recovery from the previous month's rate of 3.7%. The demand for this particular T-bill tranche remains consistent, with a bid-to-cover ratio of 2.03. The total amount applied for reached S$11.2 billion, while only S$5.5 billion was allotted.

Out of the allocated T-bills, S$1.6 billion was designated for non-competitive applications, with all applicants in this category receiving their allotment. Approximately 55% of those who submitted competitive applications at the cut-off rate were allotted T-bills, a notable increase from the 29% allotment rate in the previous month.

Over the past year, interest rates for T-bills have been steadily climbing. At 3.73%, the current rate is higher than the 2.99% recorded in September of the previous year. The highest cut-off yield for T-bills in the past 12 months was 4.4%, observed in the tranche announced in December 2022.

Eugene Leow, a senior rates strategist at DBS, anticipates that the interest rate for T-bills is likely to stabilize at these levels for the coming months. He notes the possibility of modest upside risks if the Federal Reserve raises rates once more, contrary to both their and the market's expectations, but believes such a move would not have a significant impact.