“Demand has been good due to a combination of ample liquidity and the peak-rate narrative beginning to take hold,” said Winson Phoon, head of fixed-income research at Maybank Securities in Singapore. Considering the next 12-month auction will only take place in April, investors may have preferred to lock in the higher yield now before the rates market slips if the US enters a recession, he said.
Singapore’s sale of 12-month Treasury bills drew record demand for the maturity as investors sought to lock in higher yields amid speculation they may be close to peaking.
The city state’s sale of $3.6 billion of securities due January 2024 drew total bids of $10.5 billion, an all-time high in data from the Monetary Authority of Singapore starting in 1987. They were sold at an average yield of 3.53%, the highest since 1992, and up from 3.28% at the prior sale in October.
