T-bill yield bounces to 1.45% in latest 21 May 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 (BS26110S) rose to 1.45% in the auction on 21 May 2026. 

This represents an increase from the yield of 1.40% in the previous auction on 7 May.

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 the T-bill yield at this lower level, 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 increased slightly

Total applications for the 6-month Singapore T-bill increased to S$18.0 billion in the latest auction on 21 May from S$17.5 billion in the T-bill auction on 7 May.

The stronger demand for the T-bill is likely due to sustained interest in safe haven assets amid global economic uncertainty.

The amount of competitive bids rose to S$16.6 billion on 21 May from S$16.1 billion on 7 May.

If you placed a competitive bid below 1.45%, you would receive 100% of your requested T-bill allocation.

If you bid at exactly 1.40%, the allocation would be around 72%.

The amount of non-competitive bids remain unchanged at S$1.4 billion from the previous T-bill auction on 7 May.

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 remained unchanged

The amount of T-bills issued remain unchanged at S$8.5 billion from the previous T-bill auction on 7 May.

However, as demand increased slightly, the ratio of applications to T-bills issued (bid-to-cover ratio) increased to 2.12x from 2.05x in the previous T-bill auction on 7 May.

#3 - Median and average yield of bids submitted rose

The median yield of submitted bids rose to 1.38% from 1.34% in the previous T-bill auction on 7 May.

Similarly, the average yield of bids submitted increased to 1.32% from 1.25% in the previous action.

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 1.38% to 1.45% range, which is lower than the best 6-month fixed deposit rate in Singapore. 

What would Beansprout do?  

The 6-month T-bill yield rose to 1.45% in the latest auction.

The latest rebound in the 6-month Singapore T-bill yield to 1.45% may be encouraging for investors who have been disappointed by the decline in yields in recent auctions.

The key reason appears to be that investors submitted bids at higher yields, with the median and average yield of bids both rising 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. 

While the T-bill yield has rose to 1.45%, it remains lower than the current best 6-month and 9-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 1.45% p.a. 

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

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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