T-bill yield falls to 1.40% in latest 23 April auction as demand soars

What happened?

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

The cut-off yield of the 6-month Singapore T-bill (BS26108W) was at 1.40% in the auction on 23 April 2026. 

This represents the first decline after the cut off yield reached 1.47% in the previous 6-month Singapore T-bill auction on 9 April, having increased for consecutive auctions. 

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 driving the decline in T-bill yield, and if there are better alternative options with the lower yield. 

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

#1 - Demand for the Singapore T-bill surged

Total applications for the 6-month Singapore T-bill soared to S$19.2 billion in the latest auction on 23 April from S$14.6 billion in the T-bill auction on 9 April.

This would be the highest level of T-bill applications so far in 2026, bringing it on par with the 6-month t-bill auction on 15 January. 

The stronger demand for the T-bill yield is likely due to bounce in the T-bill yield we have seen in previous auctions. 

The amount of competitive bids rose sharply to S$17.9 billion on 23 April from S$13.3 billion on 9 April.

If you placed a competitive bid below 1.40%, you would receive 100% of your requested T-bill allocation.

If you bid at exactly 1.40%, the allocation would be around 96%.

The amount of non-competitive bids stayed flat at S$1.3 billion, no changes from the T-bill auction on 9 April.

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 stay unchanged

The amount of T-bills issued was $8.4 billion, on par with the previous t-bill auction on 9 April.

With the surge in T-bill applications, the ratio of applications to T-bills issued (bid-to-cover ratio) increased sharply to 2.29x from 1.74x in the previous auction.

#3 - Median and average yield of bids submitted declined

The median yield of submitted bids declined to 1.37% from 1.41% in the previous auction.

Similarly, the average yield of bids submitted decreased to 1.30% from 1.35% in the previous auction.

We have seen a dip in US and Singapore government bond yields in the past weeks, following the de-escalation in the Middle East conflict.

Given the median yield and the cut-off yield, this suggests that a substantial number of bids were placed in the 1.37% to 1.40% range, which is lower than the best 6-month fixed deposit rate in Singapore. 

What would Beansprout do?  

The 6-month T-bill yield has gone down to 1.40% in the latest auction.

This is in line with the decline in government bond yields and falling oil prices with easing of Middle East tensions.

At the same time, demand for the Singapore T-bill has surged with the higher yields in previous auctions. 

With the recent global geopolitical tensions, I have been evaluating my financial plan to make sure it offers 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. 

With the decline in the T-bill yield to 1.40%, it is now lower than the current best 6-month fixed deposit rate of 1.5% and on par with the best 1-year fixed deposit rate. However, it is higher than the best 3-month and 9-month fixed deposit rate.

One other option 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.

There are also some savings accounts in Singapore that offer an interest rate of above 1.40% 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 April 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 markets 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.

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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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