T-bill yield steady at 1.47% as demand soars in latest 18 June auction

What happened?

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

The cut-off yield of the 6-month Singapore T-bill (BS26112T) remained steady at 1.47% in the auction on 18 June 2026.

This represents a slight decrease from the yield of 1.48% in the previous auction on 4 June.

I have seen some 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 is keeping T-bill yield elevated, and whether there are better alternatives for investors looking to park their cash.

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

#1 - Demand for the Singapore T-bill rose sharply

Total applications for the 6-month Singapore T-bill rose to S$19.4 billion in the latest auction on 18 June from S$14.1 billion in the T-bill auction on 4 June.

This represents a new peak from the recent peak of S$19.2 billion on 23 April 2026, as yields have risen moderately in recent months.

In fact, it would mark the highest levels of T-bill applications since the start of the year, while the T-bill applications in the previous auction on 4 June was the lowest levels since the start of the year.

The amount of competitive bids rose sharply to S$17.9 billion on 18 June from S$12.6 billion on 4 June.

If you placed a competitive bid below 1.47%, you would receive 100% of your requested T-bill allocation.

If you bid at exactly 1.47%, the allocation would be around 85%.

The amount of non-competitive bids maintained at S$1.5 billion from the previous T-bill auction on 4 June.

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 fell slightly

The amount of T-bills issued fell to S$8.2 billion from S$8.5 billion from the previous T-bill auction on 4 June.

However, as demand rose sharply, the ratio of applications to T-bills issued (bid-to-cover ratio) rose significantly to 2.36x from 1.66x in the previous T-bill auction on 4 June.

This is the second highest bid-to-cover ratio we have seen this year, with the highest being 2.42x in the previous T-bill auction on 15 Jan.

#3 - Median yield of bids submitted rose

The median yield of submitted bids rose to 1.41% from 1.38% in the previous T-bill auction on 21 May.

However, the average yield of bids submitted remained flat at 1.32%, unchanged from the previous auction.

This suggests that many investors demanded a higher yield in the latest auction. This reflects an increase in global bond yields in recent weeks. 

With the increase in the latest auction, the 6-month Singapore T-bill yield would be close to the recent high of 1.47% seen in the auction on 9 April 2026.

Given the median yield and the cut-off yield, this suggests that a substantial number of bids were placed in the 1.41% to 1.48% range, which is lower than the best 6-month fixed deposit rate in Singapore. 

The median yield of submitted bids rose to 1.43% from 1.41% in the previous T-bill auction on 4 June.

However, the average yield of bids submitted remained flat at 1.32%, unchanged from the previous auction.

This suggests that many investors demanded a higher yield in the latest auction. This reflects an increase in global bond yields in recent weeks. 

Given the median yield and the cut-off yield, this suggests that a substantial number of bids were placed in the 1.43% to 1.47% range, which is lower than the best 6-month fixed deposit rate in Singapore. 

What would Beansprout do?  

The 6-month T-bill yield held steady at 1.47% in the latest auction.

The slight decrease in the 6-month Singapore T-bill yield to 1.47% may be disappointing for investors who have been looking for yields to continue rising, as seen in recent auctions.

The key reason appears to be that there is strong demand for T-bills, with total applications rising sharply from the previous auction. 

With the recent global geopolitical tensions, I have been reviewing my financial plan to make sure it gives 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. 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 1.47% remains lower than the current best 6-month fixed deposit rate of 1.50% p.a. and 12-month fixed deposit rate of 1.60% p.a. However, it is still higher than the best 3-month fixed deposit rate.

Another option to consider is the Singapore Savings Bonds (SSB), which offers a 1-year return of 1.46% and average annual return of 2.11% 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 1.47% 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 market 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.

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!

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

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