Will the T-bill yield rebound in the auction on 26 March?

What happened?

The next 6-month Singapore T-bill auction (BS26106T) will be on 26 March.

In the previous auction on 12 March, the cut-off yield for the 6-month Singapore T-bill rose slightly to 1.37%.

With the spike in oil price after the escalation in the Middle East conflict, the US Federal Reserve has warned about higher inflation, driving a spike in US government bond yields. 

This has led to more discussion in the Beansprout community about whether we will see the Singapore T-bill yield rising in the upcoming auction too. 

In this article, I’ll look at some of the latest indicators to help us understand what the upcoming cut-off yield might be, how it compares with the higher fixed deposit rates in March 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 26 March

#1 – US 10-year government bond yields have gone up significantly

The 10-year US government bond yield was at 4.31% as of 19 March 2026, rising significantly from the yield of 4.12% two weeks ago. 

With the escalation in the Middle East conflict leading to a surge in oil prices, the US Federal Reserve has warned that inflation may be higher than previous expectations. 

This has led to higher US government bond yields, as investors reduce their rate cut expectations.

Likewise, the 1-year US government bond yield was at 3.75% as at 19 March 2026, higher than 3.59% two weeks ago.

#2 – Singapore government bond yields have also risen

The 10-year Singapore government bond yield was 2.15% as of 19 March 2026, a significant rise from 1.99% two weeks ago.

This move is in line with the recent surge in US government bond yields, driven by concerns that rising geopolitical tensions and higher oil prices may fuel inflation and keep global rates higher for longer.

Currently, the closing yield on the 6-month T-bill was at 1.36% on 19 March 2026, steady from the cut-off yield of 1.37% in the previous T-bill auction on 12 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 17 March 2026, also higher than the cut-off yield of 1.39% on 10 March and 1.32% on 3 March 2026.

#3 – Issuance size is smaller than the previous auction

The issuance size of the upcoming 6-month Singapore T-bill is $8.2 billion, slightly smaller than the previous auction size of $8.3 billion.

We saw a slight decrease in the amount of T-bill applications to S$17.3 billion in the auction on 12 March from S$17.6 billion in the auction on 26 February 2026. 

Despite this minor dip, demand remains elevated and continues to track above levels seen for most of the past six months.

If demand for Singapore T-bills falls further, this may help to offset the smaller issuance size in the upcoming auction. 

What would Beansprout do?

The closing yield on the 6-month Singapore T-bill was at 1.36% on 19 March 2026, close to the the cut-off yield in the previous auction.

However, we have seen a spike in US government bond yields over the past two weeks, as the spike in oil prices has led to inflation concerns and moderated investors expectations for further rate cuts. 

Likewise, the 10-year Singapore government bond yield and 3-month MAS note have gone up over the past 2 weeks. 

This suggests that we may see a higher cut-off yield for the upcoming 6-month Singapore T-bill auction on 26 March, especially if demand were to fall further compared to the previous auction. 

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 1.36% 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 1.36% p.a..

The current issuance of the Singapore Savings Bonds (SSB) offers a 1-year return of 1.36%, and 10-year average return of 1.99% p.a., while offering the flexibility to redeem priority to maturity. 

We compare T-bills with fixed deposits, savings accounts and SSBs to find out the best place to park your cash in 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 26 March (Thursday). We would need to put in our cash applications for the T-bills by 9pm on 25 March (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 25 March (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 25 March (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 24 March (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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