Will the T-bill yield rise further in the auction on 9 April?

What happened?

The next 6-month Singapore T-bill auction (BS26107X) will be on 9 April.

In the previous auction on 26 March, the cut-off yield for the 6-month Singapore T-bill jumped to 1.46%.

This comes as the spike in oil prices and higher inflation expectations have led investors to expect that the US Federal Reserve will slow down on its interest rate cuts. 

I have seen more discussion in the Beansprout community about whether we will continue to an increase in the Singapore T-bill yield.

In this article, I’ll look at the latest indicators to help us find out what the upcoming cut-off yield might be, how it compares with the higher fixed deposit rates in April 2026, and whether 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 9 April

#1 – US 10-year government bond yields moderated from highs

The 10-year US government bond yield was at 4.38% as of 2 April 2026, rising slightly from the yield of 4.31% two weeks ago. 

However, they have eased slightly from the recent highs of above 4.4%.

With continued uncertainty on the trajectory of the Middle East conflict, oil prices have remained volatile. 

This has led to changing expectations on the Fed's interest rate movements too. 

The 1-year US government bond yield was at 3.72% as at 2 April 2026, slightly lower than 3.75% two weeks ago.

#2 – Singapore 10 year government bond yields have also risen

The 10-year Singapore government bond yield was 2.25% as of 2 April 2026, a modest rise from 2.15% two weeks ago.

Like the US 10-year government bond yield, they have also moderated from the recent high of above 2.4%.

Currently, the closing yield on the 6-month T-bill was at 1.39% on 2 April 2026, lower than the cut-off yield of 1.46% in the previous T-bill auction on 26 March.

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 1.43% in the auction on 31 March 2026, lower than the cut-off yield of 1.48% on 24 March.

#3 – Issuance size is larger than the previous auction

The issuance size of the upcoming 6-month Singapore T-bill is $8.4 billion, larger than the previous auction size of $8.2 billion.

We saw a slight decrease in the amount of T-bill applications to S$16.4 billion in the auction on 26 March from S$17.3 billion in the auction on 12 March 2026. 

If demand for the T-bill continues to decline, the larger issuance size in the upcoming auction may help to support the T-bill yield.

What would Beansprout do?

The closing yield on the 6-month Singapore T-bill was at 1.39% on 2 April 2026, slightly below the cut-off yield in the previous auction.

Likewise, we have also seen some decline in US 1-year government bond yield and Singapore 3-month MAS note from their recent highs. 

This reflects volatility in US and Singapore government bond yields, with the uncertain trajectory of the Middle East conflict. 

With the recent global geopolitical tensions, I have been evaluating my financial plan to make sure it offers me sufficient security and peace of mind.

The first step is to make sure I have sufficient cash put aside for emergency uses through my liquidity pot, where I would then put into a mix of savings accounts, fixed deposits, T-bills, SSBs and money market funds.

Then, I would see how I can earn a higher yield on this pot of emergency cash, while maintaining the liquidity I may need.

Currently, the closing yield on the 6-month Singapore T-bill of 1.39% remains 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 1.39% p.a..

The current issuance of the Singapore Savings Bonds (SSB) offers a 1-year return of 1.40%, and 10-year average return of 2.14% p.a., while offering the flexibility to redeem priority to maturity. 

By finding the best place to park my cash, I know that I have a stable base for the rest of my portfolio to stay invested through markets ups and downs. 

When this pot is properly set up, I know I can ride through market volatility without being forced to sell my investments at the wrong time.

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• Reminder for Tbill

The 6-month Singapore auction will be held on 9 April (Thursday). We would need to put in our cash applications for the T-bills by 9pm on 8 April (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 8 April (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 8 April (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 7 April (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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