1-year T-bill yield falls to 3.45%. Here’s what led to the sharp decline – Beragampengetahuan

What happened?

Many investors were disappointed with the result of the latest Singapore T-bill auction.  The cut-off yield on the 1-year T-bill (BY24100T) fell sharply to 3.45% from 3.7% in the previous auction. It also represents a sharp decline from the closing yield of 3.72% as of 24 January 2024.  Source: MAS The cut-off yield of 3.45% for the 1-year Singapore T-bill would also be the lowest over the past year. Source: MAS Let us dive deeper to understand more about what is driving the lower yield on the 1-year T-bill.

What we learnt from the latest 1-year Singapore T-bill auction

#1 – Surge in demand for latest T-bill 

The total amount of applications for the latest Singapore 1-year T-bill was at S$14.4 billion, increasingly sharply from S$11.9 billion in the previous auction in October.  The amount of competitive bids increased to S$12.6 billion from S$10.5 billion in the…