Will the T-bill yield rebound in the auction on 31 July?
Bonds
By Gerald Wong, CFA • 27 Jul 2025
Why trust Beansprout? We're licensed by the Monetary Authority of Singapore (MAS).
The closing yield on the 6-month Singapore T-bill was at 1.72% on 23 July 2025.

What happened?
There will be an upcoming 6-month Singapore T-bill auction (BS25115V) on 31 July 2025.
Recently, we've seen the cut-off yield for the 6-month Singapore T-bill decline to 1.79%. The 1-year Singapore T-bill yield has also declined to 1.68%.
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.

Here's what to expect for the Singapore T-bill auction on 31 July
#1 – US bond yields remain elevated
The 10-year US government bond yield stood at 4.37% as of 24 July 2025, close to levels as at 11 July.
The elevated bond yields reflect persistent strength in US economic data, prompting investors to scale back expectations of aggressive Fed rate cuts this year.
According to the CME Fedwatch Tool as of 24 July 2025, there is a 97.9% probability that the US Federal Reserve will maintain interest rates in the upcoming meeting.

Likewise, the 1-year US government bond yield stood at 4.11% as of 24 July 2025, close to levels at 11 July 2025.
#2 – Singapore bond yields have dipped further
The 10-year Singapore government bond yield stood at 2.08% as of 24 July 2025, down slightly from 2.18% recorded on 11 July.
Yields have retreated once again and now sit near their lowest levels in over a year, underscoring continued investor preference for safer assets amid lingering global uncertainties.
The closing yield on the 6-month T-bill was 1.72% on 23 July 2025, which is lower than the cut-off yield of 1.79% in the previous T-bill auction on 17 July.

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 1.70% in the auction on 22 July 2025, slightly below the yield of 1.85% in the auction on 15 July 2025.

#3 – Issuance size similar to the previous auction
The issuance size of the upcoming 6-month Singapore T-bill is $7.6 billion, which is similar to the previous auction.
We saw a slight decrease in the amount of T-bill applications to S$15.5 billion in the auction on 17 July 2025 from S$16.1 billion on 3 July 2025.
If demand continues to decline, the larger amount of T-bill issued may help to provide some support to the cut-off yield in the auction.
What would Beansprout do?
The closing yield on the 6-month Singapore T-bill was at 1.72% on 23 July 2025. It is lower than the cut-off yield in the previous auction.
If you are looking to park an amount below S$20,000, the best 6-month fixed deposit rate of 2.15% is above the closing yield on the 6-month Singapore T-bill yield.
For an amount of S$20,000 and above, the best 6-month fixed deposit rate of 1.80% p.a. is also above the closing yield on the 6-month Singapore T-bill yield.
One of the ways to secure a potentially higher yield is to consider the Singapore Savings Bonds (SSB), which offers a 1-year return of 1.82% and average annual return of 2.29% over 10 years, while having the flexibility to redeem prior to maturity.
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.
As such, I may want to consider more concretely where to park my cash for a better yield, and apply for the upcoming auction only if I've already looked at all my other alternatives.
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.
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The 6-month Singapore auction will be held on 31 July (Thursday). We would need to put in our cash applications for the T-bills by 9 pm on 30 July (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 30 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 30 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 29 July (Tues). Read our step-by-step guide to applying via UOB.
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