Here's what to expect for the T-bill auction on 3 July

What happened?

There will be an upcoming 6-month Singapore T-bill auction (BS25113W) on 3 July 2025.

Recently, we've seen the cut-off yield for the Singapore T-bill decline to 2%. However, demand for the T-bill remains fairly high, as many investors continue to rely on the Singapore T-bill to generate passive income. 

In this post, I’ll walk you through some of the latest indicators to help us gauge what the upcoming cut-off yield might be, and it might still be worthwhile applying for the T-bills. 

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Here's what to expect for the Singapore T-bill auction on 3 July

#1 – US bond yields have continued to decline

The 10-year US government bond yield stood at 4.26% as of 27 June 2025, down slightly from 4.33% recorded two weeks earlier on 13 June.

This marks a continued pullback from the peak seen in April, as investors increasingly seek safe haven assets such as US government bonds. with rising geopolitical uncertainty globally. 

The 1-year US government bond yield was at 3.97% as of 27 June 2025, down from 4.06% two weeks earlier on 13 June.

This extended decline reflects increasing market confidence in near-term Federal Reserve rate cuts, as inflation pressures appear to be easing more decisively.

#2 – Singapore bond yields have continued to trend lower

Inline with the decline in US government bond yield, the 10-year Singapore government bond yield fell further to 2.23% as of 27 June 2025.

This marks a continued decline from the 2.42% level seen in late May.

The closing yield on the 6-month T-bill was 2.0% on 25 June 2025,  which is the same as the cut-off yield of 2% in the previous T-bill auction on 19 June.

The yield on the 3-month MAS bill can also give an indication of the yields for shorter-maturity Singapore government bonds.

The cut-off yield was at 2.06% in the auction on 24 June 2025,  slightly below the yield of 2.09% in the auction on 17 June 2025.

#3 – Same issuance size compared to the previous auction

The issuance size of the upcoming 6-month Singapore T-bill is $7.5 billion, which is the same as previous auction.

We saw a slight fall in the amount of T-bill applications to S$15.9 billion in the auction on 19 June 2025 from S$17.9 billion on 5 June 2025.

If demand continues to be fall, the unchanged issuance size may 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 2.0% on 26 June 2025. It is same as the cut-off yield in the previous auction.

The closing yield on the 6-month Singapore T-bill yield is now below the best 6-month fixed deposit rate of 2.20% 

The closing yield on the 6-month Singapore T-bill would also be below the interest rates currently offered by the best savings accounts in Singapore. 

You can find out the best places to park your savings by comparing between T-bills, fixed deposits and savings accounts here, or join the Beansprout community to get updates on the latest rates in June. 

To find out other ways to make your savings work hard, check out our guide to best ways to earn a passive income in Singapore.

For CPF investors, the closing yield remains below the breakeven cut-off yield for CPF-OA funds. 

You can find out what is the breakeven yield on the Singapore T-bill for CPF applications using our CPF-T-bill calculator.

The 6-month Singapore auction will be held on 3 July (Thursday). We would need to put in our cash applications for the T-bills by 9 pm on 2 July (Wednesday).

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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 2 July (Wed). Read our step-by-step guide to applying via DBS.
• Application for T-bills online using CPF OA via OCBC close at 9pm 2 July (Wed). Read our step-by-step guide to applying via OCBC
• Applications for T-bills online using CPF OA via UOB close at 9pm on 1 July (Tues). 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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