Here's what to expect for the T-bill auction on 11 September

What happened?

There will be an upcoming 6-month Singapore T-bill auction (BS25118F) on 11 September 2025.

The cut-off yield for the most recent 6-month Singapore T-bill declined even further to 1.44%. We have also seen fixed deposit rates falling in Singapore. 

Many investors have been using Singapore T-bills as a way to generate passive income, so you might be wondering whether it’s worth applying for this latest auction.

In this post, I’ll walk you through some of the latest indicators to help us gauge what the upcoming cut-off yield might be, and if its still be worthwhile applying for the T-bills. 

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Here's what to expect for the Singapore T-bill auction on 11 September

#1 – US bond yields have declined significantly

The 10-year US government bond yield dipped heavily to 4.08% as of 6 September 2025 on increased expectations of a Fed rate cut. 

According to CME Fedwatch Tool as of 6 Sep 2025, there is a 92% probability that the US Federal Reserve will cut interest rates by 0.25 bp in the upcoming meeting. 

Likewise, the 1-year US government bond yield fallen further to 3.67% as of 6 September 2025.

#2 – Singapore bond yields have dipped slightly too

The 10-year Singapore government bond yield was at 1.85% as of 6 September 2025, little changed from 1.86% as of 25 August.

Yields have fallen and are now close to their lowest levels in recent years, reflecting greater expectations of interest rate cuts amid slowing inflation and ongoing economic uncertainty.

The closing yield on the 6-month T-bill was 1.41% on 5 September 2025,  which is close to the cut-off yield of 1.44% in the previous T-bill auction on 28 August.

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 1.54% in the auction on 26 August 2025, below the yield of 1.60% in the auction on 19 August 2025.

#3 – Issuance size higher than the previous auction

The issuance size of the upcoming 6-month Singapore T-bill is $7.8 billion, slightly higher than the previous auction size of $7.7 billion.

We saw an increase in the amount of T-bill applications to S$18.4 billion in the auction on 28 August 2025 from S$17.9 billion in the auction on 14 August 2025.

If demand stays unchanged compared to the previous auction, the larger amount of T-bill issued may help to provide some support to the cut-off yield in the auction.

What would Beansprout do?

The closing yield on the 6-month Singapore T-bill was at 1.41% on 5 September 2025, slightly below the cut-off yield in the previous auction.

The closing yield on the 6-month Singapore T-bill is also below the best 6-month fixed deposit rate of 1.50% p.a.

One of the ways to secure a potentially higher yield is to consider the Singapore Savings Bonds (SSB), which offers a 1-year return of 1.56% and average annual return of 1.93% over 10 years, while having the flexibility to redeem prior to maturity. 

The closing yield on the 6-month Singapore T-bill would also be below the interest rates currently offered by the best savings accounts in Singapore. 

To find out other ways to make your savings work hard, check out our guide to best ways to earn a passive income in Singapore.

The 6-month Singapore auction will be held on 11 September (Thursday). We would need to put in our cash applications for the T-bills by 9 pm on 10 September (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 10 September (Wed). Read our step-by-step guide to applying via DBS.
• Application for T-bills online using CPF OA via OCBC close at 9pm 10 September (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 09 September (Tues). 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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