Will T-bill yields stay near 1.9%? What to expect at the Singapore T-bill auction on 22 October

What happened?

The next 6-month Singapore T-bill auction (BS26121N) will be on 22 October.

In the previous auction on 8 October, the 6-month Singapore T-bill cut-off yield fell slightly to 1.90%, from 1.92% on 24 September.

Since then, the 1-year T-bill cut-off yield has risen to 1.92% in the auction on 15 October, raising questions about whether the 6-month T-bill yield could also move higher.

I have also seen more discussion in the Beansprout community about whether T-bill yields could remain around current levels or rise further.

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 22 October

#1 – US 10-year government bond yields fell

The 10-year US government bond yield fell to 5.06% as of 15 October 2026, lower than its level of 5.24% two weeks ago.

This decline came despite stronger-than-expected US inflation data, which would typically put upward pressure on bond yields.

Instead, concerns about the heavy borrowing by artificial intelligence (AI) companies and weakness in technology shares appeared to have driven investors towards the relative safety of US government bonds.

As such, US government bond yields have moderated slightly.

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

Meanwhile, the 1-year US government bond yield fell slightly to 4.44% as of 15 October 2026, from 4.46% two weeks earlier.

#2 – Singapore long-term government bond yields fell

The 10-year Singapore government bond yield was at 2.33% as of 15 October 2026, also lower than 2.49% two weeks earlier.

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

However, I would pay closer attention to shorter-term Singapore yields when assessing the upcoming 6-month T-bill auction.

The closing yield on the 6-month T-bill was at 1.88% on 15 October 2026. This was slightly below the cut-off yield of 1.90% in the previous T-bill auction on 8 October.

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 1.84% in the auction on 13 October 2026, slightly below the cut-off yield of 1.85% on 6 October 2026.

#3 – T-bill issuance size is higher than the previous auction

The issuance size of the upcoming 6-month Singapore T-bill is $8.6 billion, which is higher than $8.3 billion in the previous auction on 8 October.

We saw a rise in T-bill applications to S$17.8 billion in the auction on 8 October, from S$15.8 billion in the auction on 24 September.

With the issuance size falling to S$8.3 billion from S$8.4 billion in the previous auction, the bid-to-cover ratio rose to 2.14x in the previous auction on 8 October.

What would Beansprout do?

The closing yield on the 6-month Singapore T-bill was 1.88% on 15 October, slightly below the cut-off yield of 1.90% in the previous auction.

Although the 1-year T-bill cut-off yield rose to 1.92%, shorter-term yields have remained relatively stable.

The larger S$8.6 billion issuance may support the upcoming 6-month Singapore T-bill yield, but strong demand could keep it around 1.9%.

Within my Four Pots of Wealth, I would consider T-bills alongside other options for my Liquidity Pot, where my priority is keeping money for near-term needs relatively accessible while earning some interest.

Currently, the closing yield on the 6-month Singapore T-bill of 1.88% is lower than the best 6-month fixed deposit rate of 2.05% for a minimum deposit of $10,000.

With some banks starting to increase savings account interest rates, we were able to find savings accounts in Singapore that offer an interest rate of above 1.88% p.a.

The current Singapore Savings Bond (SSB) offers a first-year interest rate of 1.67% and an average return of 2.45% p.a. if held for 10 years, while offering the flexibility to redeem prior to maturity. 

The 6-month Singapore auction will be held on 22 October (Thursday). We would need to put in our cash applications for the T-bills by 9pm on 21 October (Wednesday).

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If you are new to investing in the T-bill, check out our comprehensive guide to Singapore T-bills to learn more.

For a broader introduction to bonds, read our beginner’s guide to bond investing in Singapore, including how coupons, yields and duration work.

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