Dear readers, the most recent 6-month Singapore Treasury Bill (T-bill), BS24107N had its auction yesterday and as expected, the interest rate (i.e. cut-off yield) of the T-bill showed a decline from 3.80% in the preceding tranche to 3.75% per annum.
The bid-to-cover ratio for the T-bill was 2.54, similar to the 2.55 for the preceding tranche of T-bill.
To provide a bit more perspective on the recent interest rates of 6-month T-bills, with auction rates this year:
BS24107N, auction date: 11 Apr 24; cut-off yield of 3.75% per annum
BS24106W, auction date: 27 Mar 24; cut-off yield of 3.80% per annum
BS24105X, auction date: 14 Mar 24; cut-off yield of 3.78% per annum
BS24104T, auction date: 29 Feb 24; cut-off yield of 3.80% per annum
BS24103H, auction date: 15 Feb 24; cut-off yield of 3.66% per annum.
BS24102S, auction date: 1 Feb 24; cut-off yield of 3.54% per annum.
BS24101Z, auction date: 18 Jan 24; cut-off yield of 3.70% per annum.
BS24100F, auction date: 4 Jan 24; cut-off yield of 3.74% per annum.
I would reckon 3.75% per annum as a decent interest rate for a 6-month T-bill. However, if savers are noting a general trend of interest rate decline for the 6-month T-bill, it is reasonable to lock in slightly lower interest rates (around 3% per annum) for a longer time, e.g. via the Singapore Savings Bonds.
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