1-year T-bill yield falls to 3.7%. Here’s what we learnt from the latest auction – Beragampengetahuan

What happened?

Many in the Beansprout community were wondering if we might see a sharp decline in the yield in the 1-year Singapore T-bill auction (BY23103V) on 19 October. This came about after the yield on the 6-month T-bill fell to 3.87% in the previous auction, driven by the surge in demand.  There was hence a slight relief when it was announced that the cut-off yield for the latest 1-year T-bill auction was 3.70%. Source: MAS The latest cut-off yield of 3.7% would represent just a slight decline from the cut-off yield of 3.74% in the previous auction in July. Let us dive deeper to understand more about what is driving the lower yield on the 1-year T-bill. Source: MAS

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

#1 – Higher demand for latest T-bill compared to previous auction

The total amount of applications for…