T-bill yield rises further to 1.47% in latest 9 April auction

What happened?

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

The cut-off yield of the 6-month Singapore T-bill (BS26107X) was at 1.47% in the auction on 9 April 2026. 

This represents a further increase after the cut off yield rose to 1.46% in the previous 6-month Singapore T-bill auction on 26 March. 

I saw that there was more discussion in the Beansprout telegram community about the Singapore T-bill with the higher cut-off yield.

In this article, I'll look at what is driving the increase 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. 

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

#1 - Demand for the Singapore T-bill fell  

Total applications for the 6-month Singapore T-bill fell to S$14.6 billion in the latest auction on 9 April from S$16.4 billion on 26 March. 

This would be the lowest level of T-bill applications so far in 2026, and significantly below the recent high of S$19.2 billion on 15 January. 

The amount of competitive bids fell to S$13.3 billion on 9 April from S$15.1 billion on 26 March.

If you placed a competitive bid below 1.47%, you would receive 100% of your requested T-bill allocation.

If you bid at exactly 1.47%, the allocation would be around 22%.

The amount of non-competitive bids stayed flat at S$1.3 billion, no changes from the auction on 26 March.

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

The amount of T-bills issued was $8.4 billion, increasing from the S$8.2 billion in previous auction on 26 March.

With the more significant decline in the amount of T-bill applications, the ratio of applications to T-bills issued (bid-to-cover ratio) fell sharply to 1.74x from 2.00x in the previous auction.

#3 - Median and average yield of bids submitted rose

The median yield of submitted bids rose to 1.41% from 1.39% in the previous auction.

Similarly, the average yield of bids submitted increased to 1.35% from 1.30% in the previous auction.

We have seen a bounce in US government bond yields in the past weeks, following the escalation in the Middle East conflict and growing concerns on how the spike in oil prices will lead to higher inflation again. 

Also, expectations for interest rate cuts by the US Federal Reserve have also moderated. 

Given the median yield and the cut-off yield, this suggests that a substantial number of bids were placed in the 1.41% to 1.47% range, which is lower than the best 6-month fixed deposit rate in Singapore. 

What would Beansprout do?  

The 6-month T-bill yield has rose slightly to 1.47% in the latest auction.

This is in line with the increase in government bond yields since the Middle East conflict started, as higher oil prices have led to inflation concerns once again. 

At the same time, demand for the Singapore T-bill has also fallen sharply. 

With the recent global geopolitical tensions, I have been evaluating my financial plan to make sure it offers 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.

Despite the increase in the T-bill yield to 1.47%, it is still slightly lower than the current best 6-month fixed deposit rate of 1.5%. However, it is higher than the best 3-month, 9-month and 1-year fixed deposit rate.

One other option to consider the Singapore Savings Bonds (SSB), which offers a 1-year return of 1.40% and average annual return of 2.14% 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 1.47% 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 markets 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.

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