T-bill yield bounces to 1.48% in latest 4 June auction as demand declines

What happened?

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

The cut-off yield of the 6-month Singapore T-bill (BS26111H) rose to 1.48% in the auction on 4 June 2026. 

This represents an increase from the yield of 1.45% in the previous auction on 21 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 pushing the T-bill yield higher, 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 fell sharply

Total applications for the 6-month Singapore T-bill decreased to S$14.1 billion in the latest auction on 4 June from S$18 billion in the T-bill auction on 21 May.

This represents a significant decline from the recent peak of S$19.2 billion on 23 April 2026, as yields have come down by a fair bit in recent months.

In fact, it would mark the lowest levels of T-bill applications since the start of the year. 

Weaker T-bill demand may partly reflect investors looking at higher-yielding alternatives, while the sharper fall in competitive bids suggests yield-sensitive investors were less willing to accept lower T-bill yields.

The amount of competitive bids fell to S$12.6 billion on 4 June from S$16.6 billion on 21 May.

If you placed a competitive bid below 1.48%, you would receive 100% of your requested T-bill allocation.

If you bid at exactly 1.48%, the allocation would be around 38%.

The amount of non-competitive bids increased to S$1.5 billion from S$1.4 billion in the previous T-bill auction on 21 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 21 May.

However, as demand fell sharply, the ratio of applications to T-bills issued (bid-to-cover ratio) also fell to 1.66x from 2.12x in the previous T-bill auction on 21 May.

#3 - Median yield of bids submitted rose

The median yield of submitted bids rose to 1.41% from 1.38% in the previous T-bill auction on 21 May.

However, the average yield of bids submitted remained flat at 1.32%, unchanged from the previous auction.

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 1.41% to 1.48% 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 1.48% in the latest auction.

The latest rebound in the 6-month Singapore T-bill yield to 1.48% may be encouraging for investors who have been disappointed by the decline in yields in recent auctions.

The key reason appears to be that there is lower demand for T-bills, with total applications falling significantly 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 1.48%, 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 1.48% p.a. 

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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