Will T-bill yields rise above 1.7%? What to expect at the Singapore T-bill auction on 24 September

What happened?

The next 6-month Singapore T-bill auction (BS26119F) will be on 24 September.

In the auction on 10 September, the cut-off yield for the 6-month Singapore T-bill jumped to 1.7% from 1.6% in the previous auction on 27 August.

This was the highest 6-month T-bill cut-off yield in 2026.

Since then, the US Federal Reserve has raised interest rates for the first time since 2023, and we have looked at what this could mean for T-bills and beyond.

This has led to more discussion in the Beansprout community about whether the 6-month T-bill yield could remain around current levels or move even higher in the upcoming auction.

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 24 September

#1 – US 10-year government bond yields rose sharply

The 10-year US government bond yield rose to 4.95% as of 17 September 2026, higher than its level of 4.76% two weeks ago.

US government bond yields rose sharply ahead of the Fed meeting as elevated oil prices and firm inflation data revived concerns that price pressures could remain persistent.

On 16 September, the Federal Reserve raised interest rates by 25 basis points to 3.75%–4.00%, its first rate hike since July 2023.

Yields eased slightly after the Fed meeting as the rate hike had largely been anticipated, while a pullback in oil prices helped reduce some near-term inflation concerns.

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

Similarly, the 1-year US government bond yield rose to 4.38% as of 17 September 2026, from 4.11% two weeks earlier.

#2 – Singapore government bond yields moved higher

The 10-year Singapore government bond yield was at 2.50% as of 17 September 2026, up from 2.43% two weeks ago.

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

The closing yield on the 6-month T-bill was at 1.68% on 17 September 2026, close to the cut-off yield of 1.7% in the previous T-bill auction on 10 September.

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 1.74% in the auction on 15 September 2026, much higher than the cut-off yield of 1.6% on 8 September 2026.

#3 – Issuance size is the same as the previous auction

The issuance size of the upcoming 6-month Singapore T-bill is $8.4 billion, which is the same as the previous auction on 10 September.

We saw a slight fall in T-bill applications to S$16.6 billion in the auction on 10 September, from S$16.8 billion in the auction on 27 August.

However, the issuance size also fell from S$8.7 billion to S$8.4 billion, which meant the bid-to-cover ratio remained broadly stable.

Instead, the higher cut-off yield may have reflected investors submitting bids at higher yields, with the median submitted yield rising to 1.63%.

What would Beansprout do?

The closing yield on the 6-month Singapore T-bill was 1.68% on 17 September, close to the cut-off yield of 1.7% in the previous auction.

This comes as the US Federal Reserve has raised interest rates for the first time since 2023.

We have seen both the 10-year Singapore government bond yield and the 3-month MAS note moving up in the past few weeks.

This means that the cut-off yield for the upcoming 6-month Singapore T-bill auction on 24 September may remain elevated.

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 1.68% is close to the best 6-month fixed deposit rate of 1.7% for a minimum deposit of $500.

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 1.68% p.a.

The current Singapore Savings Bond (SSB) offers a first-year interest rate of 1.65% and an average return of 2.32% p.a. if held for 10 years, 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 September 2026 here.

The 6-month Singapore auction will be held on 24 September (Thursday). We would need to put in our cash applications for the T-bills by 9pm on 23 September (Wednesday).

Stay updated on the T-bill

Sign up to receive a free email reminder when the next Singapore T-bill auction is open.

Subscription preferences

• Reminder for Tbill

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.

Enjoyed this insight? Follow Beansprout on Telegram, Youtube, Facebook and Instagram, and add Beansprout as your preferred source on Google so you never miss an update.