It is an upward movement from the 2.71% offered in the previous auction that ended in October last year.

According to the auction results released by the Monetary Authority of Singapore on Thursday (Jan 23), Singapore's latest one-year Treasury bills (T-bills) come with a cut - off yield of 2.95%.

This marks an increase of 0.24 percentage points compared to the 2.71% yield offered in the auction for the previous one-year T-bill tranche in October last year.

Eugene Leow, the head of fixed-income research at DBS, stated that T-bill rates are no longer falling. This is because the likelihood of the Federal Reserve making immediate rate cuts has receded, given the robust US data.

“We surmise that investors have a particular threshold rate for T-bill investments, which is approximately 3 percent.”

In the latest auction, a total of S$10.1 billion in applications were made for the S$5.4 billion worth of T-bills available. This resulted in a bid-to-cover ratio of 1.87.

By contrast, in the previous auction, S$14.7 billion in applications were submitted for the S$5.2 billion of T-bills on offer.

In the latest auction, the median yield reached 2.83%, rising from 2.6% in the prior auction.

The average yield climbed to 2.72%, up from 2.47% in the previous one.

Non-competitive bids amounted to S$691.5 million and were entirely allocated.

Approximately 64% of the competitive applications at the cut-off yield were successfully allotted. Applicants who indicated a lower yield received full allotment, while those who specified a higher yield received no allotment.