T-bill yield falls further to 1.37%. What's driving the decline?

What happened?

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

In the auction on 29 January 2026, the cut off yield for the 6-month Singapore T-bill (BS26102F) fell to 1.37%.

This represents a slight decline from the yield of 1.39% in the previous auction on 15 January, as well as the yield of 1.6% in the auction on 31 December. 

It would also mark the lowest 6-month T-bill yield in recent years, matching the recent low in November 2025.

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

Stay updated on the next T-bill

Sign up to receive a free email reminder when the next Singapore T-bill auction is open.

Subscription preferences

• Reminder for Tbill

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

#1 - Demand for the Singapore T-bill declined 

Total applications for the 6-month Singapore T-bill dropped to S$16.4 billion in the latest auction on 29 January from S$19.2 billion on 15 January. 

The amount of competitive bids declined to S$15.3 billion on 29 January from S$17.4 billion two weeks ago.

If you placed a competitive bid below 1.37%, you would receive 100% of your requested T-bill allocation.

If you bid at exactly 1.37%, the allocation would be around 87%.

The amount of non-competitive bids dropped to S$1.1 billion on 29 January from S$1.8 billion on 15 January.

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 increased slightly

The amount of T-bills issued was $8.1 billion, slightly higher the previous auction on 15 January at $7.9 million.

With the drop in the applications of the T-bills, the ratio of applications to T-bills issued (bid-to-cover ratio) decreased to 2.03x. 

#3 - Median and average yield of bids submitted fell

The median yield of bids submitted fell to 1.32% from 1.35% in the previous auction. 

This would be inline with the fall in Singapore government bond yields we have seen in recent weeks. 

However, the average yield of bids submitted increased to 1.26% from 1.19% in the previous auction. 

The bounce in the average yield of bids submitted is likely due to the sizeable amount of applications that were made at a fairly low yield 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 1.37% range, which is lower than the best 6-month fixed deposit rate in Singapore. 

What would Beansprout do?  

The fall in the T-bill yield appears to be driven by the lower median yield of bids submitted, reflecting lower Singapore government bond yields in recent weeks.

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

With this fall in the cut-off yield on the T-bill, we would be looking for other ways to earn a higher yield on our cash.

For example, the best 6-month fixed deposit rate in Singapore of 1.45% p.a. is above the cut-off yield of the latest T-bill.

We were also able to find savings accounts in Singapore that offer an interest rate of above 1.37% p.a. 

To compare between fixed deposits, T-bills, savings account and SSBs, check out our guide to the best places to park your cash in January 2026.

To find out other ways to make your savings work hard, check out our guide to best ways to earn a passive income in Singapore.

[Beansprout Exclusive Longbridge Promotion] Get bonus S$50 FairPrice voucher within 5 working days, plus 12% p.a. interest boost coupon for 120 days (worth ~S$78) with Longbridge Cash Plus when you sign up for a Longbridge account via Beansprout.  Plus, stand a chance to win S$180 CapitaVouchers! Promo ends on 31 January 2026. Learn more about the Longbridge promo here. 

Follow us on Telegram, Youtube, Facebook and Instagram to get the latest financial insights.