T-bill yield stays at 1.36% as demand rises further

What happened?

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

In the auction on 26 February 2026, the cut-off yield for the 6-month Singapore T-bill (BS26104S) was at 1.36%.

This is little changed from the yield of 1.36% in the previous auction on 12 February, and yield of 1.37% in the auction on 29 January.

In this article, I'll look at what is driving the stabilisation in T-bill yield, as well as how it compares to the best fixed deposit rates in Singapore as a place to park your cash to earn a higher yield. 

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

#1 - Demand for the Singapore T-bill rose 

Total applications for the 6-month Singapore T-bill increased to S$17.6 billion in the latest auction on 26 February from S$16.6 billion on 12 February. 

The amount of competitive bids rose to S$16.4 billion on 26 February from S$15.4 billion two weeks ago.

If you placed a competitive bid below 1.36%, you would receive 100% of your requested T-bill allocation.

If you bid at exactly 1.36%, the allocation would be around 44%.

The amount of non-competitive bids remains the same at S$1.2 billion on 26 February as the auction on 12 February.

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 remains constant

The amount of T-bills issued was $8.2 billion, unchanged from the previous auction on 12 February.

With the increase in the amount T-bill applications but same amount of T-bill issued, the ratio of applications to T-bills issued (bid-to-cover ratio) rose to 2.14x. 

#3 - Median and average yield of bids submitted rose slightly

The median yield of submitted bids rose slightly to 1.32% from 1.31%.

Similarly, the average yield of bids submitted rose to 1.25% from 1.23% in the previous auction.

Given the median yield and the cut-off yield, this suggests that a substantial number of bids were placed in the 1.32% to 1.36% range, which is close to the best 6-month fixed deposit rate in Singapore. 

What would Beansprout do?  

The stabilisation in the T-bill yields at 1.36% reflects continued elevated demand for the Singapore T-bill, with applications increasing compared to the two previous auctions.

This is likely due to increased focus on safe haven assets amid global geopolitical uncertainty. 

The T-bill cut-off yield of 1.36% would be close to the current best 6-month fixed deposit rate in Singapore of 1.35% p.a..

As the T-bill yield remains low, we would be looking for other places to park our spare cash. You can check out our guide to the best places to park your cash in February 2026.

For example, we were still able to find savings accounts in Singapore that offer an interest rate of above 1.36% p.a. 

We would also be looking for ways to make our money work harder. Check out our guide to best ways to earn a passive income in Singapore.

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