Why is the amount of refund I received different from what I had calculated based on the auction results?
This can happen if there is an over-subscription for non-competitive applications (i.e. the total amount of non-competitive applications exceeds 40% of the issuance size). In this situation, the allotment to non-competitive applications will be pro-rated, with individual allotments adjusted on a randomised basis such that allotments are in denomination of S$1,000.
This may also happen if you have made a competitive application at the cut-off yield.
Illustration
Suppose a T-bills auction receives a total of S$15,000 in non-competitive applications for a total issuance size of S$30,000.
As the non-competitive applications of S$15,000 exceeds 40% of the issuance size (i.e. S$12,000), the allotment to non-competitive applications will be pro-rated by approximately 80% (S$12,000/S$15,000). This means that everyone who submitted a non-competitive application will have their allotments pro-rated and adjusted on a randomised basis to ensure that allotments are in denomination of S$1,000.
| Competitive or Non-competitive | Application amount | Allotment amount | Cumulative allotment amount |
| Non-competitive application (A) | S$1,000 | S$0 (not allotted) | S$0 |
| Non-competitive application (B) | S$2,000 | S$1,000 (partially allotted) | S$1,000 |
| Non-competitive application (C) | S$3,000 | S$3,000 (fully allotted) | S$4,000 |
| Non-competitive application (D) | S$4,000 | S$4,000 (fully allotted) | S$8,000 |
| Non-competitive application (D) | S$5,000 | S$4,000 (partially allotted) | S$12,000 |
| Total of Non-competitive applications | S$15,000 |
S$12,000 | Applications are pro-rated by approximately 80%, with individual allotments adjusted on randomised basis to ensure that allotments are in denominations of S$1,000. |
This information is sourced from MAS
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