MAS to launch bills

The facility will function as the fourth MMO policy instrument, said OCBC.

This will be in addition to FX swaps & reverse swaps, repos & reverse repos, and clean leading/borrowing, to manage liquidity in the system, especially to mop up any excessive liquidity.

MAS bills will likely to play a role in banks' MLA books. According to OCBC, the yield could reference off current 3-month T-bill, which at Monday's auction cut off at 0.23%. 

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