Here's what to expect for the T-bill auction on 2 July

What happened?

The next 6-month Singapore T-bill auction (BS26113X) will be on 2 July.

In the previous auction on 18 June, the cut-off yield for the 6-month Singapore T-bill held steady at 1.47% from the yield of 1.48% in the previous auction on 4 June.

With the cut-off yield holding steady, the Beansprout community has been discussing whether we could see any change in the Singapore T-bill yield.

In this article, I’ll look at some of the latest indicators to help us understand what the upcoming cut-off yield might be.

Here's what to expect for the Singapore T-bill auction on 2 July

#1 – US 10-year government bond yield edged lower

The 10-year US government bond yield was at 4.38% as of 26 June 2026, below its level of 4.46% two weeks ago.

The upward pressure on US government bond yields has eased as signs of de-escalation in Middle East tensions reduced concerns over a potential oil price shock and its inflationary impact.

However, yields remained relatively elevated as investors continued to weigh the resilience of the US economy and concerns over the country's fiscal deficit and rising government debt burden. 

At the most recent Federal Reserve meeting, policymakers noted that they had considered the possibility of further rate hikes, reinforcing the view that monetary policy could remain restrictive for an extended period.

You can check the latest 10-year US government bond yield here.

However, the 1-year US government bond yield edged up to 3.98% as of 28 May 2026, from 3.86% two weeks earlier. This reflects the increased possibility of further near-term rate hikes.

#2 – Singapore government bond yields edged lower

The 10-year Singapore government bond yield was at 2.03% as of 26 June 2026, slightly lower from 2.11% two weeks ago.

The decline in the 10-year yield largely mirrored the pullback in the 10-year US yield. 

You can check the latest 10-year Singapore government bond yield here.

The closing yield on the 6-month T-bill was at 1.46% on 26 June 2026, close to the cut-off yield of 1.47% in the previous T-bill auction on 18 June.

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 1.46% in the auction on 23 June 2026, slightly higher than the cut-off yield of 1.43% on 16 June.

#3 – Issuance size is higher than the previous auction

The issuance size of the upcoming 6-month Singapore T-bill is $8.7 billion, higher than the previous auction size of $8.2 billion on 18 June.

This also represents the highest level of 6-month T-bills issued, above the previous high of $8.5 billion on 4 June 2026.

We saw a sharp increase in T-bill applications to S$19.4 billion in the auction on 18 June from S$14.1 billion in the auction on 4 June.

If demand stays elevated in the upcoming auction, the larger amount of T-bills issued may still help to support the cut-off yield in the upcoming auction.

What would Beansprout do?

The closing yield on the 6-month Singapore T-bill was at 1.46% on 25 June 2026, close to the cut-off yield in the previous auction.

However, we have seen a rise in the 3-month MAS bill, while 1-year US government bond yield remains elevated.

At the same time, there will be a larger amount of T-bills issued in the upcoming auction.

This may mean that the 6-month Singapore T-bill yield may stay supported.

As we approach the mid point of 2026, 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 within Beansprout's four pots of wealth, where I would then put into a mix of savings accounts, fixed deposits, T-bills, SSBs and money market funds. Learn more about the liquidity pot here. 

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 1.46% is slightly below the best 6-month fixed deposit rate of 1.50% 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.

The current issuance of the Singapore Savings Bonds (SSB) offers a 1-year return of 1.46%, and 10-year average return of 2.11% p.a., while offering the flexibility to redeem prior to maturity. 

I compare savings accounts, fixed deposits, T-bills, SSBs and money market funds to find the best places to park your cash in June 2026 here.

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 2 July (Thursday). We would need to put in our cash applications for the T-bills by 9pm on 1 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 1 July (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 1 July (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 30 June (Tuesday). Read our step-by-step guide to applying via UOB.  

Do you prefer to park your cash in T-bills or fixed deposits? Share with us in the comments below or in our Telegram group!

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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