6-month T-bill yield stays elevated at 1.90% as demand rises in latest 8 October 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 (BS26120W) dipped to 1.90% in the auction on 8 October 2026.

This was a slight decline from the previous cut-off yield of 1.92% in the auction on 24 September, following three consecutive increases in the T-bill yield.

We recently highlighted how the surge in global bond yields could affect Singapore government bond yields, potentially keeping T-bill yields elevated.

I have seen ongoing discussion in the Beansprout Telegram community about where to park our cash, especially as fixed deposit rates have continued to rise.

In this article, I’ll look at what drove the slight decline in T-bill yield and how it compares with other options for earning a higher return on our spare cash.

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

#1 - Demand for the Singapore T-bill increased 

Total applications for the 6-month Singapore T-bill rose to S$17.8 billion in the latest auction on 8 October, from S$15.8 billion in the previous auction on 24 September.

This represents an increase of S$2.0 billion, or about 13%.

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 approximately S$15.8 billion on 8 October, from S$14.3 billion on 24 September.

If you placed a competitive bid below 1.90%, you would receive 100% of your requested T-bill allocation.

If you bid at exactly 1.90%, the allocation would be around 52%.

The amount allotted to non-competitive applications also increased to S$2.0 billion, from S$1.5 billion in the previous auction on 24 September.

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 declined slightly

The amount of T-bills allotted fell slightly to S$8.3 billion, from S$8.4 billion in the previous auction on 24 September.

With the increase in total applications and the slightly lower amount allotted, the ratio of applications to T-bills allotted (bid-to-cover ratio) rose to 2.14x from 1.88x in the previous auction.

#3 - Median yield of bids submitted continued to rise

The median yield of submitted bids rose to 1.86%, from 1.79% in the previous T-bill auction on 24 September.

The average yield of submitted bids also increased to 1.76% from 1.69%.

Both measures rose by 0.07 percentage points, even though the cut-off yield dipped slightly to 1.90%.

This suggests that investors continued to submit bids at higher yields, potentially reflecting the recent increase in bond yields in the US and globally.

However, the stronger demand for T-bills may have contributed to the slight decline in the cut-off yield, despite investors submitting bids at higher yields.

The gap between the median yield of 1.86% and the cut-off yield of 1.90% also narrowed, suggesting that the yields submitted by investors were closer to the final cut-off yield.

What would Beansprout do?  

The 6-month T-bill cut-off yield dipped slightly to 1.90% in the latest auction, from 1.92% previously.

Despite the decline, the yield remains near its highest level in 2026, following three consecutive increases in previous auctions.

The US Federal Reserve raised interest rates in September for the first time since 2023, while bond yields have also been rising globally.

In the latest auction, we continued to see bidders submitting higher yields. However, demand for T-bills also increased, which may have contributed to the slight decline in the cut-off yield.

With the recent movement in interest rates, I have been reviewing where to park my cash to earn a higher yield, while having 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 1.90% is lower than the best 6-month fixed deposit rate of 2.05% p.a., as well as the best 12-month fixed deposit rate of 2.08% p.a.

Another option to consider is the Singapore Savings Bond (SSB), which the current issuance offers a first-year return of 1.67% and average annual return of 2.45% over 10 years, while having the flexibility to redeem prior to maturity.

There are also savings accounts in Singapore offering interest rates above 1.90% p.a. worth considering if you prefer to keep your cash more accessible.

For more liquidity than T-bills or fixed deposits, I may also consider money market funds, while remembering that they are not capital guaranteed and are not insured under SDIC.

Longbridge is running a promotion offering 10% p.a. interest boost on S$3,600 with Longbridge Cash Plus for 90 days (worth up to S$88). Also, get a free S$80 Fairprice voucher within 5 working days when you sign up for a Longbridge account via Beansprout. Promo ends on 31 October 2026. Learn more about the Longbridge promo here.

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 new to investing in the T-bill, check out our comprehensive guide to Singapore T-bills to learn more.

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!

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