Here's what to expect for the T-bill auction on 31 December

What happened?

The next 6-month Singapore T-bill auction (BS26100A) will be on 31 December 2025.

In the most recent auction on 18 December, the cut-off yield for the 6-month Singapore T-bill bounced to 1.48% from 1.41% in the previous auction.

This led to renewed interest in the Singapore T-bill, with questions in the Beansprout community about whether we will se a further increase in the T-bill yield 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, and if it will still be worthwhile applying for T-bills as a way to generate passive income.

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Here's what to expect for the Singapore T-bill auction on 31 December 

#1 – US 10-year government bond yields remains steady

The 10-year US government bond yield was at 4.13% as of 27 December 2025,  close to the yield of 4.19% from two weeks ago.  

US government bond yields appeared to have stabilised, after the Fed cut rates as expected in its December meeting. 

The 1-year US government bond yield was at 3.49% as at 13 December 2025, also close to 3.53% from two weeks ago.

#2 – Singapore government bond yields remains steady

The 10-year Singapore government bond yield was at 2.31% as of 27 December 2025, similar to 2.33% from two weeks ago. 

This is consistent with the stabilisation in US 10-year government bond yields in recent weeks. 

The closing yield on the 6-month T-bill was 1.45% on 26 December 2025,  close to the cut-off yield of 1.48% in the previous T-bill auction on 18 December. 

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 1.61% in the auction on 23 December 2025, rising further from  the yield of 1.44% in the auction on 16 December 2025 and yield of 1.55% in the auction on 9 December 2025.

#3 – Issuance size lower than the previous auction

The issuance size of the upcoming 6-month Singapore T-bill is $7.8 billion, slightly lower than the previous auction size of $7.9 billion.

We saw a further decline in the amount of T-bill applications to S$14.9 billion in the auction on 18 December 2025 from S$16.3 billion in the auction on 4 December 2025.

If demand for the T-bill continues to decline, the cut-off yield on the T-bill may remain supported even with the smaller issuance size. 

What would Beansprout do?

The closing yield on the 6-month Singapore T-bill was at 1.45% on 13 November 2025, close to the cut-off yield in the previous auction.

We have seen some stabilisation in the US 10-year government bond yield and Singapore 10-year government bond yield in recent weeks.

However, there was a further bounce in the Singapore 3-month note yield. In addition, if demand for the T-bill continues to decline, there may be further support for the T-bill yield. 

The closing yield on the 6-month Singapore T-bill is similar to the best 6-month fixed deposit rate of 1.45% 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 1.45% p.a. 

We compare T-bills with fixed deposits, savings accounts and SSBs to find out the best place to park your cash in December here.

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.

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Stay updated on the T-bill

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

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• Reminder for Tbill

The 6-month Singapore auction will be held on 31 December (Wednesday). We would need to put in our cash applications for the T-bills by 9 pm on 30 December (Tuesday).

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 30 December (Tue). Read our step-by-step guide to applying via DBS.
• Application for T-bills online using CPF OA via OCBC close at 9pm on 30 December (Tue). Read our step-by-step guide to applying via OCBC
• Applications for T-bills online using CPF OA via UOB close at 9pm on 29 December (Mon). 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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