Dear readers, applications are now open for the next 6-month T-bill, BS24109A which will go for auction on 9 May 24.
I believe expectations are high for BS24109A if we are to look at the cut-off yields of previous T-bills below:
BS24108N, auction date: 25 Apr 24; cut-off yield of 3.74% per annum
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
For the past 5 consecutive T-bills, the cut-off yield of the 6-month T-bills has consistently exceeded 3.70% per annum, which is really a reasonable yield.
For the last two T-bills, cut-off yields seem to have stabilised at around 3.75% per annum.
What is more, the average 10-year yield of the upcoming Singapore Savings Bonds (Jun 24) has increased 8.8% from 3.06% per annum to 3.3% per annum! I believe the increase in interest rate will similarly spilled over to the Singapore T-bills space!
As a result, expectations are high for the cut-off yields of BS24109N: question is now whether there is a possibility that the cut-off yield can even exceed 3.80% per annum (last seen for the 29 Feb 24 T-bill) with the successful rally of average 10-year interest for upcoming Singapore Savings bonds.