Here's what to expect for the T-bill auction on 19 June

What happened?

There will be an upcoming 6-month Singapore T-bill auction (BS25112X) on 19 June 2025.

Recently, we've seen the cut-off yield for the Singapore T-bill decline to 2.05%. However, demand for the T-bill remains high even with the fall in the T-bill yield.

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. 

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Here's what to expect for the Singapore T-bill auction on 19 June

#1 – US bond yields have declined further compared to two weeks ago

The 10-year US government bond yield was at 4.33% as of 13 June 2025, a continued decline from 4.47% two weeks earlier.

This reflects a more noticeable retreat after the earlier upward trend that began in April, as investors reassess the timing of potential Federal Reserve rate cuts amid ongoing US trade tensions and persistent inflation concerns.

Nonetheless, yields appear to be stabilising following the sharp spike triggered by the earlier tariff announcements made by US President Donald Trump.

Yields on shorter-term US government bonds have also declined.

The 1-year US government bond yield stood at 4.06% as of 13 June 2025, down slightly from 4.17% two weeks earlier.

This suggests a mild pullback, potentially reflecting shifting market expectations around near-term rate cuts and cooling inflationary pressures.

#2 – Singapore bond yields have continued to decline

The 10-year Singapore government bond yield declined to 2.25% as of 13 June 2025, down from 2.42% on 28 May 2025, extending the pullback that began in May.

The closing yield on the 6-month T-bill was 2.04% on 12 June 2025, slightly below the the cut-off yield of 2.05% in the previous T-bill auction on 5 June.

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 2.11% in the auction on 10 June 2025,  continuing its decline from 2.48% in the auction on 22 April 2025.

#3 – Lower issuance size compared to the previous auction

The issuance size of the upcoming 6-month Singapore T-bill is $7.5 billion, lower than the previous auction which was at $7.6 billion.

We saw a slight fall in the amount of T-bill applications to S$17.9 billion in the auction on 5 June 2025 from S$18.1 billion on 22 May 2025.

If demand continues to be elevated, the smaller issuance size may lead to downward pressure on the cut-off yield in the upcoming T-bill auction.

What would Beansprout do?

The closing yield on the 6-month Singapore T-bill was at 2.04% on 12 June 2025. It is slightly below the cut-off yield of 2.05% in the previous auction.

The closing yield on the 6-month Singapore T-bill yield is now slightly below the best 6-month fixed deposit rate of 2.35% 

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. 

You can find out the best places to park your savings by comparing between T-bills, fixed deposits and savings accounts here, or join the Beansprout community to get the latest updates on latest rates in June. 

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.

The 6-month Singapore auction will be held on 19 June (Thursday). We would need to put in our cash applications for the T-bills by 9 pm on 18 June (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 18 June (Wed). Read our step-by-step guide to applying via DBS.
• Application for T-bills online using CPF OA via OCBC close at 9pm 18 June (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 17 June (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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