Dear readers, the latest 6-month Singapore Treasury Bill (T-Bill), BS23122F, closed with an auction today.
I believe prior to the auction closing, expectation and interest were high for this T-bill. To understand why, let us look at the interest rate (cut-off yield) of the previous T-Bills prior to BS23112 T-Bill as follows.
BS23121A, auction date: 26 Oct 23; cut-off yield of 3.95% per annum.
BS23120A, auction date: 12 Oct 23; cut-off yield of 3.87% per annum.
BS23119H, auction date: 28 Sep 23; cut-off yield of 4.07% per annum.
As we note from the above, there has been an increase in cut-off yield of the previous two T-bills (prior to BS23122A). BS23121A has a cut-off yield as high as 3.95% and this leads naturally subscribers and potential subscribers to believe that the cut-off yield of BS23122A may reach as high as 4% per annum or beyond.
But what a disappointment! The cut-off yield of BS23122A was just 3.75% per annum, really some distance from a target of 4% per annum by some savers.
What is noteworthy is the very strong demand for the T-bill. The total amount applied for the BS23122A was $13.2 billion, but total amount allotted was only $5.7 billion. That means an oversubscription of almost 132% for the T-bill! More details of the result of the T-bill here.
That’s it for my insights today. I Thank you once again for your support of SG STOCKS INVESTING, your Money and Lifestyle magazine! Connect with me here to follow the daily exciting and useful posts on these two blogs, Thank You for your support!
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