Here's what to expect for the T-bill auction on 17 July
Bonds
By Gerald Wong, CFA • 12 Jul 2025
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The closing yield on the 6-month Singapore T-bill was at 1.81% on 10 July 2025.
What happened?
There will be an upcoming 6-month Singapore T-bill auction (BS25114N) on 17 July 2025.
Recently, we've seen the cut-off yield for the Singapore T-bill decline to 1.85%.
However, demand for the T-bill remains fairly high, as many investors continue to rely on the Singapore T-bill to generate passive income.
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 it might still be worthwhile applying for the T-bills.
Here's what to expect for the Singapore T-bill auction on 17 July
#1 – US bond yields have edged higher
The 10-year US government bond yield stood at 4.37% as of 11 July 2025, up from 4.26% recorded on 27 June.
This marks a modest rebound from the recent low in early July, though yields remain below the April peak.
The uptick is likely due to stronger than expected economic data in the US, which is leading investors to moderate their expectations for Fed rate cuts this year.
According to. the CME Fedwatch Tool as of 12 July 2025, investors are expecting the Fed to cut rates twice in the second half of 2025, dialling back from the expectation of 3 rate cuts earlier.
Likewise, the 1-year US government bond yield stood at 4.10% as of 11 July 2025, up from 3.97% recorded on 27 June.
This slight rebound comes after a brief dip below 4% in early July.
#2 – Singapore bond yields have rebounded slightly
The 10-year Singapore government bond yield stood at 2.18% as of 11 July 2025, bouncing slightly from the low close to 2.0% in early July.
Despite the modest rebound, yields remain near their lowest levels in over a year, reflecting continued investor demand for safer assets such as Singapore government bonds amid persistent global uncertainty.
The closing yield on the 6-month T-bill was 1.81% on 10 July 2025, which is lower than the cut-off yield of 1.85% in the previous T-bill auction on 3 July.
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 1.83% in the auction on 8 July 2025, slightly below the yield of 1.88% in the auction on 1 July 2025.
#3 – Higher issuance size compared to the previous auction
The issuance size of the upcoming 6-month Singapore T-bill is $7.6 billion, which is the higher than the previous auction.
We saw a slight increase in the amount of T-bill applications to S$16.1 billion in the auction on 3 July 2025 from S$15.9 billion on 19 June 2025.
If demand remains firm, 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 1.81% on 10 July 2025. It is lower than the cut-off yield in the previous auction.
The closing yield on the 6-month Singapore T-bill yield is now below the best 6-month fixed deposit rate of 2.15%
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.
As such, I would be keen to apply for the upcoming T-bill auction.
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.
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.
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The 6-month Singapore auction will be held on 17 July (Thursday). We would need to put in our cash applications for the T-bills by 9 pm on 16 July (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 16 July (Wed). Read our step-by-step guide to applying via DBS.
- Application for T-bills online using CPF OA via OCBC close at 9pm 16 July (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 15 July (Tues). Read our step-by-step guide to applying via UOB.
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