When is the next Singapore T-Bill Auction? 6 Details You Must Know
The next Singapore Treasury Bill (T-Bill) auction will be held on Wednesday, July 5, 2023. The auction will be for 3-month and 6-month T-Bills, with a total issue size of S$1 billion. The auction will be conducted by the Monetary Authority of Singapore (MAS), which is the central bank of Singapore.
T-Bills are short-term government securities that are issued by the Singapore government. They have a maturity of less than one year, and they are considered to be very safe investments. T-Bills are typically used by investors to park their money for a short period of time, or to hedge against interest rate risk.
The T-Bill auction is open to all investors, both domestic and foreign. However, only successful bidders will be allocated T-Bills.
To participate in the T-Bill auction, you will need to submit a bid to the MAS through a participating bank or brokerage firm. The bid must be in the form of a tender, which specifies the amount of T-Bills that you wish to purchase and the price that you are willing to pay for them.
The key details of the next T-Bill auction are as follows:
- Date: Wednesday, July 5, 2023
- Time: 10:00 AM SGT
- Issue size: S$1 billion
- Maturities: 3-month and 6-month
- Minimum bid amount: S$500,000
There are several benefits to investing in T-Bills, including:
- Safety: T-Bills are considered to be very safe investments, as they are backed by the full faith and credit of the Singapore government.
- Liquidity: T-Bills are highly liquid, meaning that they can be easily bought and sold in the secondary market.
- Low risk: T-Bills have a low risk of default, as they are issued by the Singapore government.
- Tax efficiency: T-Bills are exempt from withholding tax in Singapore.
The main risk of investing in T-Bills is that their value can fluctuate in response to changes in interest rates. If interest rates rise, the value of T-Bills will fall.
You can learn more about T-Bills by visiting the MAS website or by speaking to a financial advisor.
Additional Information
In addition to the information provided above, here are some additional details about the next T-Bill auction:
- The auction will be conducted using a yield-based bidding system. This means that bidders will submit bids in terms of the yield that they are willing to accept for the T-Bills.
- The MAS will determine the successful bids based on the lowest yields submitted by the bidders.
- The successful bidders will be allocated T-Bills at the yield that they bid.
- The T-Bills will be issued on July 7, 2023.
- The T-Bills will mature on October 6, 2023 (for the 3-month T-Bills) and January 5, 2024 (for the 6-month T-Bills).
| Table 1: Key Details of the Next T-Bill Auction |
|—|—|
| Date | Wednesday, July 5, 2023 |
| Time | 10:00 AM SGT |
| Issue size | S$1 billion |
| Maturities | 3-month and 6-month |
| Minimum bid amount | S$500,000 |
| Table 2: Benefits of Investing in T-Bills |
|—|—|
| Safety | Backed by the full faith and credit of the Singapore government |
| Liquidity | Highly liquid, can be easily bought and sold in the secondary market |
| Low risk | Low risk of default, as they are issued by the Singapore government |
| Tax efficiency | Exempt from withholding tax in Singapore |
| Table 3: Risks of Investing in T-Bills |
|—|—|
| Interest rate risk | Value of T-Bills can fluctuate in response to changes in interest rates |
| Table 4: Additional Information about the Next T-Bill Auction |
|—|—|
| Auction method | Yield-based bidding system |
| Successful bids | Determined based on the lowest yields submitted |
| Allocation | Successful bidders will be allocated T-Bills at the yield that they bid |
| Issue date | July 7, 2023 |
| Maturity dates | October 6, 2023 (for the 3-month T-Bills) and January 5, 2024 (for the 6-month T-Bills) |
