Here's what to expect for the T-bill auction on 4 December

What happened?

The next 6-month Singapore T-bill auction (BS25124F) will be on 4 December 2025.

In the last auction, we saw the cut-off yield for the 6-month Singapore T-bill rise to 1.39%.

Hence, some of you may be wondering if we will see a further bounce 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 4 December 

#1 – US bond yields have dipped 

The 10-year US government bond yield was at 3.99% as of 27 November 2025, below its levels of 4.15% two weeks ago.

This likely reflects the rising market expectations of an interest rate cut by the US Federal Reserve in the upcoming December meeting.

According to the CME Fedwatch tool as of 28 November 2025. there is more than 80% probability that we will see an interest rate cut by the Fed in December.

Likewise, the 1-year US government bond yield was at 3.60% as at 27 November 2025, falling from 3.71% from two weeks ago.

#2 – Singapore government bond yields increased

The 10-year Singapore government bond yield was at 2.16% as of 27 November 2025, increasing from 1.94% on 14 November 2025.

This divergence in trend may be due to sharper-than-expected jump in Singapore's core inflation. 

The closing yield on the 6-month T-bill was 1.37% on 27 November 2025,  below the cut-off yield of 1.39% in the previous T-bill auction on 20 November. 

The yield on the 3-month MAS bill can also indicate the yields for shorter-maturity Singapore government bonds.

However, the cut-off yield was at 1.43% in the auction on 25 November 2025, also above the yield of 1.39% in the auction on 18 November 2025.

#3 – Issuance size similar to the previous auction

The issuance size of the upcoming 6-month Singapore T-bill is $8.0 billion, the same as the previous auction size.

We saw a decrease in the amount of T-bill applications to S$16.9 billion in the auction on 20 November 2025 from S$18.6 billion in the auction on 6 November 2025.

If demand for the T-bill continues to falls, the same issuance size of the upcoming T-bill may help to support the T-bill yield.

What would Beansprout do?

The closing yield on the 6-month Singapore T-bill was at 1.37% on 27 November 2025, close to the cut-off yield in the previous auction.

However, it is worth noting that as bond yields have been volatile in recent weeks.

For example, we have seen lower US government bond yields with the rising expectations of Fed interest rate cuts. 

On the other hand, the 10-year Singapore government bond yield has bounced following stronger than expected inflation.

The closing yield on the 6-month Singapore T-bill is slightly above the best 6-month fixed deposit rate of 1.35% 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 1.37% p.a. 

We compare T-bills with fixed deposits, savings accounts and SSBs to find out the best place to park your cash in November 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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The 6-month Singapore auction will be held on 4 December (Thursday). We would need to put in our cash applications for the T-bills by 9 pm on 3 December (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 3 December (Wed). Read our step-by-step guide to applying via DBS.
• Application for T-bills online using CPF OA via OCBC close at 9pm on 3 December (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 2 December (Tue). Read our step-by-step guide to applying via UOB.  

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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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