Here's what to expect for the T-bill auction on 18 December

What happened?

The next 6-month Singapore T-bill auction (BS25125Z) will be on 18 December 2025.

This will be the last 6-month T-bill auction of 2025.

After the cut-off yield for the most recent 6-month Singapore T-bill bounced to 1.41%, some of you may be wondering if we will see a further increase in the yield in the upcoming auction.

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 18 December 

#1 – US 10-year government bond yields have bounced

The 10-year US government bond yield was at 4.19% as of 13 December 2025, rising from 3.99% two weeks ago. 

This is despite the recent rate cut by the US Federal Reserve.

The increase in the US 10-year government bond yield likely reflects indications by the Fed that there may be a pause in further rate cuts. 

The 1-year US government bond yield was at 3.53% as at 13 December 2025, declining from about 3.60% two weeks ago, following the Fed rate cut. 

#2 – Singapore government bond yields bounced 

The 10-year Singapore government bond yield was at 2.33% as of 13 December 2025, rising sharply from 2.16% two weeks ago. 

This is consistent with the increase in US 10-year government bond yields in recent weeks. 

The closing yield on the 6-month T-bill was 1.40% on 12 December 2025,  close to the cut-off yield of 1.41% in the previous T-bill auction on 4 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 1.55% in the auction on 9 December 2025, significantly above the yield of 1.40% in the auction on 2 December 2025.

#3 – Issuance size lower than the previous auction

The issuance size of the upcoming 6-month Singapore T-bill is $7.9 billion, slightly lower than the previous auction size of $8.0 billion.

We saw a further decline in the amount of T-bill applications to S$16.3 billion in the auction on 4 December 2025 from S$16.9 billion in the auction on 20 November 2025.

If demand for the T-bill continues to decline, the cut-off yield on the T-bill may remain supported even with the smaller issuance size. 

What would Beansprout do?

The closing yield on the 6-month Singapore T-bill was at 1.40% on 13 November 2025, close to the cut-off yield in the previous auction.

However, we have seen an increase in the US 10-year government bond yield, Singapore 10-year government bond yield, and Singapore 3-month note in recent weeks.

If demand for the T-bill continues to decline, there may be further support for the T-bill yield. 

The closing yield on the 6-month Singapore T-bill is close to the best 6-month fixed deposit rate of 1.40% 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 1.40% p.a. 

The latest Singapore Savings Bonds (SSBs) also offers a 1-year return of 1.33% and 10-year average return of 1.99%, while offering the flexibility to redeem before maturity. 

We compare T-bills with fixed deposits, savings accounts and SSBs to find out the best place to park your cash in December 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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Stay updated on the T-bill

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The 6-month Singapore auction will be held on 18 December (Thursday). We would need to put in our cash applications for the T-bills by 9 pm on 17 December (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 17 December (Wed). Read our step-by-step guide to applying via DBS.
• Application for T-bills online using CPF OA via OCBC close at 9pm on 17 December (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 16 December (Tue). 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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