T-bill yield dips to 1.56% as demand rises in latest 13 August 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 (BS26116V) dipped to 1.56% in the auction on 13 August 2026, marking the first decline in cut-off yield since 18 June.

This was after 3 consecutive increases in the 6-month T-bill yield, with the previous cut-off yield at 1.59% for the auction on 30 July. 

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 rose slightly

Total applications for the 6-month Singapore T-bill rose to S$18.5 billion in the latest auction on 13 August from S$18.1 billion in the T-bill auction on 30 July.

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 rose to S$16.9 billion on 13 August from S$16.4 billion on 30 July.

If you placed a competitive bid below 1.56%, you would receive 100% of your requested T-bill allocation.

If you bid at exactly 1.56%, the allocation would be around 58%.

The amount of non-competitive bids fell to S$1.6 billion, from S$1.7 billion in the previous T-bill auction on 30 July.

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 rose slightly

The amount of T-bills issued rose slightly to S$8.7 billion from S$8.6 billion in the previous T-bill auction on 30 July.

With applications rising together with issuance, the ratio of applications to T-bills issued (bid-to-cover ratio) only changed slightly to 2.13x from 2.11x in the previous T-bill auction on 30 July.

#3 - Median yield of bids submitted rose

The median yield of submitted bids rose slightly to 1.52% from 1.51% in the previous T-bill auction on 30 July.

The average yield of submitted bids remained flat at 1.47% compared to the previous auction.

Given the median yield and the cut-off yield, this suggests that a substantial number of bids were placed in the 1.52% to 1.56% range, which is lower than the best 6-month fixed deposit rate in Singapore.

What would Beansprout do?  

The dip in the 6-month T-bill yield to 1.56% in the latest auction appears to be driven by an increase in demand for the T-bill. 

However, the median yield of bids submitted remains elevated, while the larger amount of T-bills issued has also provided some support to 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 1.56% is lower than the best 6-month fixed deposit rate of 1.65% p.a., as well as the best 9-month and 12-month fixed deposit rate of 1.70% p.a.

Another option to consider is the Singapore Savings Bonds (SSB), which the next issuance is projected to offer a first-year return of 1.52% and average annual return of 2.25% 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 1.56% p.a. which are also worth considering if you prefer to keep your cash more accessible.

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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