Here's what to expect for the T-bill auction on 10 April

What happened?

The next 6-month Singapore T-bill auction (BS25107W) will be coming up on 10 April 2025.

With the recent volatility in the global markets, some investors may be looking for a safe place to park their savings. 

In the previous auction, we saw the cut-off yield for the 6-month Singapore T-bill rebound to 2.73%. This led to comments in the Beansprout community that it might be worthwhile looking at the T-bill once again.

In this post, I will be looking at the latest indicators to find out what might be the cut-off yield for the upcoming T-bill auction. 

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Here's what to expect for the Singapore T-bill auction on 10 April

#1 – US bond yields have fallen sharply 

The 10-year US government bond yield fell sharply to 3.9% as of 4 April from 4.2% two weeks ago.

This is due to a flight to safety with growing concerns about a sharp economic slowdown after sweeping tariffs announced by US President Donald Trump. 

Likewise, the yields on US government bonds with shorter maturities have declined too. 

The 1-year US government bond yield has fallen to 3.9% from 4.0% two weeks ago. However, the extent of the decline is not as significant as the 10-year US government bond yield. 

#2 – Closing yield on 6-month Singapore T-bill has also declined

We have seen a similar decline in Singapore government bond yields with the fall in US government bond yields. 

The Singapore 10-year government bond yield dropped to 2.48% on 4 April from 2.66% two weeks ago. 

Likewise, the closing yield on the 6-month T-bill was 2.57% on 3 April , below the cut-off yield of 2.73% in the previous T-bill auction on 26 March. However, it would be quite close to the cut-off yield of 2.56% in the auction on 13 March. 

The yield on the 3-month MAS bill can also give an indication of the yields for shorter-maturity Singapore government bonds.

The cut-off yield was at 2.61% in the auction on 2 April, falling sharply from 2.84% in the auction on 25 March.

#3 – No change in issuance size compared to the previous auction

The issuance size of the upcoming 6-month Singapore T-bill is $7.4 billion, unchanged from the previous auction. 

We saw a decline in the amount of T-bill applications of S$15.8 billion in the auction on 26 March from S$19.8 billion in the auction on 13 March. 

If we were to see a rebound in demand for the T-bill, we might see further pressure in the cut-off yield for the T-bill. 

What would Beansprout do?

The closing yield on the 6-month Singapore T-bill was at 2.57% on 3 April, lower than the cut-off yield in the previous auction.

This is because we have seen a fall in Singapore government bond yields with the decline in US bond yields, with growing concerns of a global recession following sweeping tariffs announced by the US. 

For now, the closing yield on the 6-month Singapore T-bill yield remains slightly above the best 6-month fixed deposit rate of 2.50% as banks have cut their interest rates in April 2025.

However, bond yields globally remain highly volatile with uncertainty on the trade tariffs, and the cut-off yield in the T-bill auction will depend on the eventual demand for the T-bill.  

The closing yield on the 6-month Singapore T-bill would be below the interest rates currently offered by the best savings accounts in Singapore.  For example, the UOB Stash account offers an interest rate of up to 3.0% p.a. for S$100,000 of deposits. In addition, you can get an additional S$320 cash credit when you top up S$100,000 new funds into your UOB Stash Account by combining with the UOB Cash is King promotion. 

For CPF investors, the closing yield remains below the breakeven cut-off yield for CPF-OA funds. 

You can find out what is the breakeven yield on the Singapore T-bill for CPF applications using our CPF-T-bill calculator.

The 6-month Singapore auction will be held on 10 Apr (Thursday). We would need to put in our cash applications for the T-bills by 9 pm on 9 April (Wednesday).

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Applications for the T-bills using CPF-OA will close 1-2 business days before the auction date, and the dates differ across the three local banks.

• Applications for T-bills online using CPF OA via DBS close at 9pm on 9 Apr (Wed). Read our step-by-step guide to applying via DBS.
• Application for T-bills online using CPF OA via OCBC close at 9pm 9 Apr (Wed). Read our step-by-step guide to applying via OCBC
• Applications for T-bills online using CPF OA via UOB close at 9pm on 8 Apr (Tue). Read our step-by-step guide to applying via UOB. 

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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