T-bill yield rises to 1.59% in latest 30 July auction

What happened?

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

The cut-off yield for the 6-month Singapore T-bill (BS26115N) rose to 1.59% in the auction on 30 July 2026, marking its highest level since the start of the year.

This was also the third consecutive increase in the 6-month T-bill yield, after the cut-off yield rose to 1.55% in the previous 6-month Singapore T-bill (BS26114W) auction on 16 July.

Despite the increase, the latest 6-month T-bill yield remains below the 1.68% cut-off yield in the most recent 1-year T-bill auction on 23 July.

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 drove the increase in the T-bill yield, and whether there are better alternatives for investors looking to earn a higher return on their cash.

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 rose to S$18.1 billion in the latest auction on 30 July from S$16.0 billion in the T-bill auction on 16 July.

T-bill applications had previously reached S$19.4 billion in the auction on 18 June, the highest level recorded since the start of the year.

The amount of competitive bids rose to S$16.4 billion on 30 July from S$14.5 billion on 16 July.

If you placed a competitive bid below 1.59%, you would receive 100% of your requested T-bill allocation.

If you bid at exactly 1.55%, the allocation would be around 69%.

The amount of non-competitive bids rose to S$1.7 billion, higher from S$1.5 billion in the previous T-bill auction on 16 July.

This would be the highest level of non-competitive bids since the T-bill auction on 15 Jan.

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 fell slightly

The amount of T-bills issued fell slightly to S$8.6 billion from S$8.8 billion in the previous T-bill auction on 16 July.

With applications rising as issuance decreased, the ratio of applications to T-bills issued (bid-to-cover ratio) rose to 2.11x from 1.82x in the previous T-bill auction on 16 July.

#3 - Median yield of bids submitted rose

The median yield of submitted bids rose to 1.51% from 1.49% in the previous T-bill auction on 16 July.

The average yield of submitted bids also rose to 1.47% from 1.44% 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 1.51% to 1.59% range, which is similar to the best 6-month fixed deposit rate in Singapore.

What would Beansprout do?  

With the 6-month T-bill yield rising to 1.59% in the latest auction, it has become a more competitive option for parking short-term cash.

The higher cut-off yield reflected that investors are submitting bids at higher yields in the latest auction. 

The latest result may appeal to investors seeking higher short-term returns, although I would still compare the T-bill with other cash management options based on the returns and liquidity offered.

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 within Beansprout's four pots of wealth. 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 1.59% is higher than the current best 6-month fixed deposit rate of 1.55% p.a. and the best 3-month fixed deposit rate of 1.35% p.a.

However, investors who can set aside their cash for longer may still find a slightly higher rate of 1.60% p.a. with a 12-month fixed deposit.

Another option to consider is the Singapore Savings Bonds (SSB), which the next issuance is projected to offer a first-year return of 1.49% and average annual return of 2.25% 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 1.59% 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 Liquidity Pot that allows the rest of my portfolio to remain invested through market volatility without being forced to sell at the wrong time.

If you are looking for the best place to park your savings, we compare T-bills to fixed deposits, SSBs and savings accounts to find out how to allow our spare cash to work harder. 

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, SSB 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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