T-bill yield rises to 1.50% in latest 2 July 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 (BS26113X) rose to 1.50% in the auction on 2 July 2026.

With the increase in the latest auction, the 6-month Singapore T-bill yield would be highest since the start of the year.

This represents an increase from the yield of 1.47% in the previous auction on 18 June.

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 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 fell slightly

Total applications for the 6-month Singapore T-bill fell to S$17.4 billion in the latest auction on 2 July from S$19.4 billion in the T-bill auction on 18 June.

This came as the previous auction on 18 June marked the highest levels of T-bill applications since the start of the year.

The amount of competitive bids fell slightly to S$15.9 billion on 2 July from S$17.9 billion on 18 June.

If you placed a competitive bid below 1.50%, you would receive 100% of your requested T-bill allocation.

If you bid at exactly 1.50%, the allocation would be around 45%.

The amount of non-competitive bids maintained at S$1.5 billion from the previous T-bill auction on 18 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 rose slightly

The amount of T-bills issued rose to S$8.7 billion from S$8.2 billion from the previous T-bill auction on 18 June.

In fact, it would mark the highest levels of T-bill issuance since the start of the year, since the previous high in the T-bill auction on 7 May.

With demand falling concurrently, the ratio of applications to T-bills issued (bid-to-cover ratio) fell significantly to 2.00x from 2.36x in the previous T-bill auction on 18 June.

#3 - Median yield of bids submitted rose

The median yield of submitted bids rose to 1.45% from 1.43% in the previous T-bill auction on 18 June.

The average yield of submitted bids also rose to 1.38% from 1.32% in the previous auction.

This suggests that many investors demanded a higher yield in the latest auction. 

Given the median yield and the cut-off yield, this suggests that a substantial number of bids were placed in the 1.45% to 1.50% range, which is the same as the best 6-month fixed deposit rate in Singapore. 

What would Beansprout do?  

The 6-month T-bill yield rose to 1.50% in the latest auction.

The slight increase in the 6-month Singapore T-bill yield to 1.50% may be good news for investors who have been looking for yields to continue rising, as seen in recent auctions.

The key reason appears to be that many investors demanded a higher yield in the latest 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 1.50% matches the current best 6-month fixed deposit rate of 1.50% p.a., but remains lower than the 12-month fixed deposit rate of 1.60% p.a. However, it is still higher than the best 3-month fixed deposit rate of 1.35% p.a.

Another option to consider is the Singapore Savings Bonds (SSB), which offers a 1-year return of 1.46% and average annual return of 2.06% 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 1.50% p.a. which are also worth considering if you prefer to keep your cash more accessible.

By finding the best place to park my cash, I can build a stable base that allows the rest of my portfolio to stay invested through market ups and downs.

When my liquidity pot is properly set up, I know I can ride through market volatility without being forced to sell my investments at the wrong time. 

For a more structured way to organise your savings, investments and wealth, you can read our guide to the Four Pots of Wealth.

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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