1 year T-bill yield rises to 1.46%. What's driving the bounce?

What happened?

The results of the latest 1-year Singapore T-bill auction are out.

The cut-off yield for the 1-year Singapore T-bill (BY26100S) rose to 1.46% in the auction on 16 April.

This follows an increase in the 6-month Singapore T-bill yield to 1.47% in the latest auction.

Earlier, we shared that the 1-year Singapore T-bill closing yield is close to the 6-month Singapore T-bill yield.

This latest 1-year T-bill yield is higher compared to the yield of 1.39% in the previous 1-year T-bill auction.

In this article, we will find out what is driving the bounce in the Singapore T-bill yield, and if there are other ways to earn a yield of above 1.46%.

What we learnt from the latest 1-year Singapore T-bill auction

#1 – Stronger demand for 1-year T-bill compared to the previous auction

Total applications for the latest Singapore 1-year T-bill increased to S$12.4 billion from S$12.1 billion in the previous 1-year T-bill auction on 15 January 2026.

The amount of non-competitive bids rose to S$491 million from S$417 million in the previous auction.

Since the S$491 million in non-competitive bids fell within the allocation limit, eligible non-competitive bids received a full 100% allocation at a cut-off yield of 1.46%. 

The amount of competitive bids increased to S$11.9 billion from S$11.7 billion in the previous auction.

However, demand is still lower compared to the auctions in October 2025.

#2 – Higher average and median yield for bids submitted

The average yield of submitted bids rose to 1.31%, up from 1.27% in January's auction.

Similarly, the median yield increased to 1.38%, from 1.33% previously.

This marks a reversal from the general decline in short-term bond yields seen for most of 2025.

We have seen a bounce in US and Singapore government bond yields in recent weeks, following the escalation in the Middle East conflict and growing concerns on how the spike in oil prices will lead to higher inflation again. 

Also, expectations for interest rate cuts by the US Federal Reserve have also moderated. 

#3 – Cut-off yield lower than breakeven yield for CPF OA applications

The cut-off yield of 1.46% is lower than the breakeven cut-off yield for T-bills applications using CPF OA.

As a recap, the breakeven cut-off yield for T-bill applications using CPF is higher than the current CPF OA rate of 2.5%, due to the potential loss of additional CPF interest when applying for T-bill using CPF savings. 

What would Beansprout do? 

The rise in cut-off yield for the latest 1-year Singapore T-bill to 1.46% appears to be driven by an increase in the yields of bids submitted, inline with the bounce in Singapore T-bill yields in recent months. 

With the bounce in the 1-year T-bill yield, the cut-off rate is now higher than the best 1-year fixed deposit rate in Singapore of 1.40% p.a.

The 1-year T-bill yield of 1.46% is also close to the latest 6-month T-bill yield of 1.47% on 9 April. 

While the yield has edged higher, we remain keen on exploring alternative instruments to park our spare cash.

One of the ways to secure a lock in higher yields over the long-term is to consider the Singapore Savings Bonds (SSB), which offers a 1-year return of 1.40% and average annual return of 2.14% over 10 years, while having the flexibility to redeem prior to maturity. 

I compare savings accounts, fixed deposits, T-bills, SSBs and money market funds. to find the best places to park your cash in April 2026 here.

Ultimately, the best option depends on whether I prioritise a slightly higher locked-in yield today, or greater flexibility for my cash.

By finding the best place to park my cash, I know that I have a stable base for the rest of my portfolio.

With this liquidity pot properly set up, I can stay invested through market ups and downs without worrying about being forced to sell my investments at the wrong time. Learn more about the liquidity pot here. 

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