Yield for Singapore's latest 1-year T-bill tumbles to 2.71%

Singapore's latest one-year tranche of Treasury bills (T-bills) is offering a cut-off yield of 2.71 per cent, auction results released by the Monetary Authority of Singapore showed on Oct 17.

This is down from the 3.38 per cent offered in the auction for the previous one-year tranche in July.

Ms Frances Cheung, head of foreign exchange and rates strategy at OCBC, said the cut-off yield was below expectations and the 67 basis point (bps) drop is "slightly more than the movement in market rate would have implied".

She added that the latest one-year T-bill result and the latest six-month yield at 3.06 per cent suggest that investors expect the six-month rate to fall to around 2.32 per cent six months later, and "this appears too low to us".