6-month T-bill yield jumps to 1.7% in latest 10 September auction

What happened?

The latest 6-month Singapore T-bill auction results are out.

The cut-off yield for the 6-month Singapore T-bill (BS26117A) jumped to 1.7% in the auction on 10 September 2026.

It marks the highest cut-off yield in 2026, surpassing the previous high of 1.60% p.a. in the auction on 27 August.

This is also the highest 6-month T-bill cut-off yield since the auction on 31 July 2025, when it reached 1.77% p.a.

I have seen on-going discussion in the Beansprout telegram community about how the T-bill compares to the best fixed deposit rates in Singapore as a place to park our cash to earn a higher yield. 

In this article, I’ll look at what drove the increase in the T-bill yield, and whether there are better alternatives for investors looking to earn a higher return on their cash.

What we learnt from the latest 6-month Singapore T-bill auction

#1 - Demand for the Singapore T-bill fell

Total applications for the 6-month Singapore T-bill fell to S$16.6 billion in the latest auction on 10 September from S$16.8 billion in the T-bill auction on 27 August.

T-bill applications had previously reached S$19.4 billion in the auction on 18 June, the highest level recorded since the start of the year.

The amount of competitive bids fell to S$15.2 billion on 10 September from S$15.4 billion on 27 August.

If you placed a competitive bid below 1.7%, you would receive 100% of your requested T-bill allocation.

If you bid at exactly 1.7%, the allocation would be around 54%.

The amount of non-competitive bids remained at S$1.4 billion, compared to the previous T-bill auction on 27 August.

Since the amount of non-competitive bids was within the allocation limit, all eligible non-competitive bids received full allocation for the T-bill.

#2 - T-bills issued decreased

The amount of T-bills issued was S$8.4 billion, slightly lower than the previous auction on 27 August at S$8.7 billion.

With the drop in the applications of the T-bills and lower issuance size, the ratio of applications to T-bills issued (bid-to-cover ratio) increased slightly to 1.97x from 1.93x in the previous auction on 27 August.

#3 - Median yield of bids submitted rose

The median yield of submitted bids rose to 1.63% from 1.55% in the previous T-bill auction on 27 August.

The average yield of submitted bids also rose to 1.56% from 1.48% in the previous T-bill auction on 27 August.

The increase in the median and average yield of bids submitted reflects rising expectations of potential US Federal Reserve interest rate hikes. 

Given the median yield and the cut-off yield, this suggests that a substantial number of bids were placed in the 1.63% to 1.7% range, which is lower than the best 6-month fixed deposit rate in Singapore.

What would Beansprout do?  

The 6-month T-bill cut-off yield jumped to 1.70% in the latest auction, its highest level in 2026.

This follows a trend of rising T-bill yields in recent months, with rising expectations of potential interest rate hikes by the US Federal Reserve. 

In the latest auction, we have seen bidders submitting higher yields. At the same time, demand for the T-bill has fallen, further supporting the T-bill yield. 

With the recent movement in interest rates, I have been reviewing where to park my cash to earn a higher yield, while having 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 within Beansprout's four pots of wealth. Then, I would see how I can earn a higher yield on this pot of emergency cash, while maintaining the liquidity I may need. Learn more about the liquidity pot here. 

The T-bill yield of 1.7% is still lower than the best 6-month and 12-month fixed deposit rates.

Another option to consider is the Singapore Savings Bond (SSB), which the current issuance offers a first-year return of 1.65% and average annual return of 2.32% over 10 years, while having the flexibility to redeem prior to maturity.

There are also some savings accounts in Singapore that offer an interest rate of above 1.7% p.a. which are also worth considering if you prefer to keep your cash more accessible.

For more liquidity than T-bills or fixed deposits, I may also consider money market funds, while remembering that they are not capital guaranteed and are not insured under SDIC.

Longbridge is running a promotion offering 10% p.a. interest boost on S$3,000 with Longbridge Cash Plus for 100 days (worth up to S$82). Also, get a free S$80 Fairprice voucher within 5 working days when you sign up for a Longbridge account via Beansprout. Promo ends on 30 September 2026. Learn more about the Longbridge promo here.

If you are looking for the best place to park your savings, we compare T-bills to fixed deposits, SSBs and savings accounts to find out how to allow our spare cash to work harder. 

By finding the best place to park my cash, I can build a stable Liquidity Pot that allows the rest of my portfolio to remain invested through market volatility without being forced to sell at the wrong time.

If you are new to investing in the T-bill, check out our comprehensive guide to Singapore T-bills to learn more.

Do you prefer to park your cash in T-bills, SSB or fixed deposits? Share with us in the comments below or in our Telegram group!

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