Here's what to expect for the T-bill auction on 12 March

What happened?

The next 6-month Singapore T-bill auction (BS26105H) will be on 12 March.

In the previous auction on 26 February, the cut-off yield for the 6-month Singapore T-bill remained steady at 1.36%.

With rising global market uncertainty,  I have seen more discussions in the Beansprout community about whether it is worthwhile applying for T-bills. 

Some have also asked if T-bills are more attractive compared to fixed deposits, especially with the higher fixed deposit rates in March 2026.

In this article, I’ll look at some of the latest indicators to help us understand what the upcoming cut-off yield might be, and if T-bills are still a good way to generate passive income in Singapore.

Here's what to expect for the Singapore T-bill auction on 12 March 

#1 – US 10-year government bond yields have gone up slightly

The 10-year US government bond yield was at 4.12% as of 5 March 2026, rising slightly from the yield of 4.09% two weeks ago.  

This slight increase likely reflects heightened geopolitical tensions, as the escalating US-Israel-Iran conflict has pushed up oil prices and raised concerns that inflation could remain elevated for longer. 

The 1-year US government bond yield was at 3.59% as at 5 March 2026, higher than 3.49% two weeks ago.

#2 – Singapore government bond yields have stayed steady

The 10-year Singapore government bond yield was at 1.99% as of 5 March 2026, hovering closely to the 2.00% two weeks ago. 

This is in contrast to the higher US government bond yields we have seen in the past week, reflecting Singapore's safe haven status amidst the rising geopolitical tensions.

The closing yield on the 6-month T-bill was 1.35% on 5 March 2026, also close to the cut-off yield of 1.36% in the previous T-bill auction on 26 February. 

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 1.32% in the auction on 3 March 2026, little changed from the yield of 1.32% on 24 February and 1.34% on 16 February 2026.

#3 – Issuance size is larger than the previous auction

The issuance size of the upcoming 6-month Singapore T-bill is $8.3 billion, slightly larger than the previous auction size of $8.2 billion.

We saw a slight increase in the amount of T-bill applications to S$17.6 billion in the auction on 26 February from S$16.6 billion in the auction on 12 February 2026, as demand for Singapore T-bills remain elevated amid safe haven demand.

If demand for Singapore T-bills remains strong, this may continue to put downward pressure on the upcoming cut-off yield even with a larger issuance size. 

What would Beansprout do?

The closing yield on the 6-month Singapore T-bill was at 1.35% on 5 March 2026, close to the the cut-off yield in the previous auction.

This is in contrast to the increase in US government bond yields over the past week, and likely reflects Singapore's status as a safe haven amidst an escalation in global geopolitical uncertainty.

However, the closing yield on the 6-month Singapore T-bill of 1.35% is below the best 6-month fixed deposit rate of 1.50% p.a.

We were also able to find savings accounts in Singapore that offer an interest rate of above 1.35% p.a., as some banks have introduced promotions recently.

The current issuance of the Singapore Savings Bonds (SSB) offers a 1-year return of 1.36%, and 10-year average return of 1.99% p.a., while offering the flexibility to redeem priority to maturity. 

We compare T-bills with fixed deposits, savings accounts and SSBs to find out the best place to park your cash in here.

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.

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• Reminder for Tbill

The 6-month Singapore auction will be held on 12 March (Thursday). We would need to put in our cash applications for the T-bills by 9pm on 11 March (Wednesday).

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 11 March (Wednesday).Read our step-by-step guide to applying via DBS.
• Application for T-bills online using CPF OA via OCBC close at 9pm on 11 March (Wednesday). Read our step-by-step guide to applying via OCBC
• Applications for T-bills online using CPF OA via UOB close at 9pm on 10 March (Tuesday). 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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