Here's what to expect for the T-bill auction on 15 January

What happened?

The first 6-month Singapore T-bill auction (BS26101E) of 2026 will be coming up on 15 January 2025.

In the most recent auction on 31 December, the cut-off yield for the 6-month Singapore T-bill rose to 1.60%.

This led to renewed interest in the Singapore T-bill, with questions in the Beansprout community about whether we will se a further increase in the T-bill yield 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, and if it will still be worthwhile applying for T-bills as a way to generate passive income.

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Here's what to expect for the Singapore T-bill auction on 15 January 

#1 – US 10-year government bond yields remains steady

The 10-year US government bond yield was at 4.17% as of 9 January 2026,  close to the yield of 4.13% from two weeks ago.  

US government bond yields appeared to have stabilised, after the Fed cut rates as expected in its December meeting. 

The 1-year US government bond yield was at 3.50% as at 8 January 2026, similar to two weeks ago.

#2 – Singapore government bond yields decline

The 10-year Singapore government bond yield was at 2.20% as of 9 January 2026, falling from 2.31% from two weeks ago. 

The closing yield on the 6-month T-bill was 1.46% on 8 January 2026, below the cut-off yield of 1.60% in the previous T-bill auction on 31 December. 

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 1.45% in the auction on 6 January 2026, falling from  the yield of 1.57% in the auction on 30 December 2025.

#3 – Issuance size lower than the previous auction

The issuance size of the upcoming 6-month Singapore T-bill is $7.8 billion, similar to the previous auction size.

We saw a stabilisation in the amount of T-bill applications at S$14.8 billion in the auction on 31 December 2025, litlle changed from S$14.9 billion in the auction on 18 December 2025.

If demand for the T-bill rebounds with the recent bounce in the T-bill yield, we may see further downward pressure in the cut-off yield on the T-bill.

What would Beansprout do?

The closing yield on the 6-month Singapore T-bill was at 1.46% on 8 January 2026, below the cut-off yield in the previous auction.

This follows a trend of declining Singapore government bond yields in recent weeks.

In addition, the cut-off yield on the T-bill may also face downward pressure if we see a sharp increase in T-bill applications with higher yields in recent auctions.

That said, The closing yield on the 6-month Singapore T-bill is similar to the best 6-month fixed deposit rate of 1.45% p.a.

While banks have been cutting the interest rates on savings accounts, we were still able to find savings accounts in Singapore that offer an interest rate of above 1.46% p.a. 

We compare T-bills with fixed deposits, savings accounts and SSBs to find out the best place to park your cash in January 2026 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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The 6-month Singapore auction will be held on 15 January (Thursday). We would need to put in our cash applications for the T-bills by 9 pm on 14 January (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 14 January (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 14 January (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 13 January (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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