Singapore's Latest One-Year T-Bill Offers Cut-Off Yield of 3.58%

Singapore's most recent one-year Treasury bill (T-bill) auction yielded a cut-off yield of 3.58%, released on Thursday (Apr 18).

This marks an increase from the previous offering in January 2023, which had a cut-off yield of 3.45%.

The bid-to-cover ratio for the auction was 1.97, with applications totaling S$10.1 billion for an allotment of S$5.1 billion.

Analysts attribute the higher yield to the strength of the US economy, making it challenging for the Federal Reserve to lower rates.

Expectations for Fed rate cuts have pulled back since the beginning of the year, leading to stability in short-term SGD rates.

Despite the increase in rates, demand for T-bills remains strong, offering higher returns in the current high-interest-rate environment.