T-Bill liquidity a bit worrying

I bid 4% this time round. If still cannot get then i will go for DBS eFD again but i read the DBS promotion has ended. Have to wait for new promo then.

I bid 4% this time round. If still cannot get then i will go for DBS eFD again but i read the DBS promotion has ended. Have to wait for new promo then.

Cut off yield for T bill BS22123S 3.9%

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So many lowballers. Next t bill maybe 3.8%

This Savings Bond was allotted using the Quantity Ceiling format. Applicants who applied for S$14,000 or lower were fully allotted, subject to the individual allotment limits.
Applicants who applied for S$14,500 or higher were allotted either S$14,000 or S$14,500.
Approximately 39.34% of these applicants were selected at random and allotted the additional S$500.

Yet the sg pipu so dumb bid low2 for the t bills 

How does the bond work?

Must submit a bid price like in the stock market?

Treasury bills (T-bills) are short-term Singapore Government Securities (SGS) issued at a discount to their face value. Investors receive the full face value at maturity. The Government issues 6-month and 1-year T-bills.

When you apply for T-bills, there are 2 options, competitive or non-competitive bids.

Non-competitive = you will accept whatever yield (i.e., Cut-off Yield) that came out from the auction. In other words, if the cut-off yield is 2%, think of it as if you interest on an annualised basis is going to be 2%.

So if you were to apply for $1,000 for a t-bill with 6 months tenor, you will almost immediately after the auction get back ~$10 upfront. Then your $1,000 will be credited back to you at the end of the 6 months.

Competitive = you want a baseline as to what yield you might want to accept. So example, you can find a yield of 2.5% somewhere else, so you wouldn't bid for T-bills if you don't get better than 2.5% from it, in that case you may want to put in a competitive bid of 2.55%.

Should the eventual cut-off yield be 2.7%, you will get the t-bill, but instead of getting a yield of 2.55%, you will get a yield of 2.7%.

Should the eventual cut-off yield be 2.2%, you will get nothing.

To conclude for Competitive

If your bid is < cut-off yield, you will definitely get the full allocation an the yield is the cut-off yield

If your bid is = cut-off yield, your allocation is pro-rata (stand to be corrected) and the yield is the cut-off yield

If your bid is > cut-off yield, you get nothing.

Are the returns usually lower than FDs?

How about Malaysia government bond?
Anyone is buying Malaysia government bond?

Malaysian Government securities are marketable debt instruments issued by the Government of Malaysia to raise funds from the domestic capital market. The central bank (Bank Negara Malaysia) acts as banker and adviser to the Government and assists in planning and facilitating issuances through market infrastructure that it owns and operates. Currently, the various forms of Government securities in Malaysia are:

Malaysian Government Securities (MGS) - long-term interest-bearing debt securities issued by the Government of Malaysia to raise funds from the domestic capital market for development expenditure
Malaysian Government Investment Issues (MGII) - long-term Islamic Government securities, issued based on established Shariah principles
Malaysian Treasury Bills (MTB) - short-term discount securities issued by the Government of Malaysia for working capital
Malaysian Islamic Treasury Bills (MITB) - short-term Islamic Government securities, issued based on established Shariah principles