Here's what to expect for the 6-month Singapore T-bill auction on 10 September

What happened?

The next 6-month Singapore T-bill auction (BS26118E) will be on 10 September.

In the auction on 27 August, the cut-off yield for the 6-month Singapore T-bill rose to 1.6% from 1.56% in the previous auction on 13 August.

This marks the highest 6-month T-bill cut-off yield in 2026, surpassing the previous high of 1.59% in the auction on 30 July.

This has led to more discussion in the Beansprout community about whether the 6-month T-bill yield could remain around current levels or move even higher in the upcoming auction.

In this article, I’ll look at some of the latest indicators to help us understand what the upcoming cut-off yield might be.
 

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

#1 – US 10-year government bond yields rose

The 10-year US government bond yield rose to 4.76% as of 3 September 2026, higher than its level of 4.65% two weeks ago.

US government bond yields moved higher over the past two weeks as elevated oil prices and persistent inflation concerns raised expectations that interest rates could remain elevated.

Longer-term yields were also affected by concerns over rising US government borrowing.

However, yields eased on 3 September after Federal Reserve Governor Christopher Waller indicated that he could support keeping rates unchanged if inflation continues to cool.

You can check the latest 10-year US government bond yield here.

Similarly, the 1-year US government bond yield rose to 4.11% as of 3 September 2026, from 3.98% two weeks earlier.

#2 – Singapore government bond yields moved higher

The 10-year Singapore government bond yield was at 2.43% as of 3 September 2026, up from 2.36% two weeks ago.

You can check the latest 10-year Singapore government bond yield here.

The closing yield on the 6-month T-bill was at 1.57% on 3 September 2026, close to the cut-off yield of 1.6% in the previous T-bill auction on 27 August.

The yield on the 3-month MAS bill can also indicate the yields for shorter-maturity Singapore government bonds.

The cut-off yield was at 1.65% in the auction on 1 September 2026, much higher than the cut-off yield of 1.49% on 25 August 2026.

#3 – Issuance size is lower than the previous auction

The issuance size of the upcoming 6-month Singapore T-bill is $8.4 billion, lower than the previous auction size of $8.7 billion on 27 August.

We saw a fall in T-bill applications to S$16.8 billion in the auction on 27 August from S$18.5 billion in the auction on 13 August.

The fall in applications suggests there was less competition for T-bills in the previous auction, which could put some upward pressure on the cut-off yield if demand remains weaker.

However, the smaller issuance size in the upcoming auction means there will also be fewer T-bills available, which could work in the opposite direction.

Hence, I would watch both the level of applications and the amount offered rather than assuming that lower demand alone will lead to a higher cut-off yield.

What would Beansprout do?

The closing yield on the 6-month Singapore T-bill was 1.57% on 3 September, close to the cut-off yield of 1.6% in the previous auction.

This comes as both US and Singapore government bond yields have moved higher in recent weeks.

Currently, the closing yield on the 6-month Singapore T-bill of 1.57% is lower than the best 6-month fixed deposit rate of up to 2% p.a.

With some banks starting to increase savings account interest rates, we were able to find savings accounts in Singapore that offer an interest rate of above 1.57% p.a.

The current Singapore Savings Bond (SSB) offers a first-year interest rate of 1.65% and an average return of 2.32% p.a. if held for 10 years, while offering the flexibility to redeem prior to maturity. 

Within my Four Pots of Wealth, I would consider T-bills alongside other options for my Liquidity Pot, where my priority is keeping money for near-term needs relatively accessible while earning some interest.

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

Stay updated on the T-bill

Sign up to receive a free email reminder when the next Singapore T-bill auction is open.

Subscription preferences

• Reminder for Tbill

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.

Enjoyed this insight? Follow Beansprout on Telegram, Youtube, Facebook and Instagram, and add Beansprout as your preferred source on Google so you never miss an update.