What happened?
The next 6-month Singapore T-bill auction (BS26109N) will be on 7 May.
In the previous auction on 23 April, the cut-off yield for the 6-month Singapore T-bill fell to 1.40% from a recent high of 1.47% in the previous auction.
With the drop in cut-off yield, the Beansprout community has been discussing whether we could see a rebound in the Singapore T-bill yield.
In this article, I’ll look at some of the latest indicators to help us understand what the upcoming cut-off yield might be.
Here’s what to expect for the Singapore T-bill auction on 7 May
#1 – US 10-year government bond yields have edged higher
The 10-year US government bond yield was at 4.36% as of 29 April 2026, higher than its levels of 4.27% two weeks ago.
This comes as Brent crude oil price reached the highest level in four years, after President Trump said he would extend the blockade on the Strait of Hormuz.
The latest US Federal Reserve meeting also provided signs that policymakers are increasingly cautious about cutting rates too quickly.
Likewise, the 1-year US government bond yield edged up to 3.73% as of 29 April 2026, from 3.69% two weeks earlier.
#2 – Singapore 10 year government bond yields have also risen slightly
The 10-year Singapore government bond yield rose slightly 2.10% as of 29 April 2026, a slight increase from 2.03% two weeks ago.
The closing yield on the 6-month T-bill was at 1.40% on 28 April 2026, on par with cut-off yield of 1.40% in the previous T-bill auction on 23 April.
The yield on the 3-month MAS bill can also indicate the yields for shorter-maturity Singapore government bonds.
The cut-off yield was at 1.38% in the auction on 28 April 2026, lower than the cut-off yield of 1.40% on 23 April.
#3 – Issuance size is larger than the previous auction
The issuance size of the upcoming 6-month Singapore T-bill is $8.5 billion, higher than the previous auction size of $8.4 billion.
This also represents the highest amount of 6-month Singapore T-bill being auctioned.
We saw a surge in T-bill applications to S$19.2 billion in the auction on 23 April, from S$14.6 billion in the auction on 9 April.
If demand remains unchanged in the upcoming auction, the larger issuance size may help to provide some support to the cut-off yield in the upcoming auction.
What would Beansprout do?
The closing yield on the 6-month Singapore T-bill was at 1.40% on 28 April 2026, on par with the cut-off yield in the previous auction.
With continued global geopolitical uncertainty, I have been evaluating my financial plan to make sure it offers me sufficient security and peace of mind.
The first step is to make sure I have sufficient cash put aside for emergency uses through my liquidity pot, where I would then put into a mix of savings accounts, fixed deposits, T-bills, SSBs and money market funds. Learn more about the liquidity pot here.
Then, I would see how I can earn a higher yield on this pot of emergency cash, while maintaining the liquidity I may need.
Currently, the closing yield on the 6-month Singapore T-bill of 1.40% remains below the best 6-month fixed deposit rate of 1.50% p.a.
While banks have been cutting the interest rates on savings accounts, we were still able to find savings accounts in Singapore that offer an interest rate of above 1.40% p.a..
By finding the best place to park my cash, I know that I have a stable base for the rest of my portfolio to stay invested through markets ups and downs.
When this pot is properly set up, I know I can ride through market volatility without being forced to sell my investments at the wrong time.
The 6-month Singapore auction will be held on 7 May (Thursday). We would need to put in our cash applications for the T-bills by 9pm on 6 May (Wednesday).
Applications for the T-bills using CPF-OA will close 1-2 business days before the auction date, and the dates differ across the three local banks.
Do you prefer to park your cash in T-bills or fixed deposits? Share with us in the comments below or in our Telegram group!
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