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

What happened?

The next 6-month Singapore T-bill auction (BS26111H) will be on 4 June.

In the previous auction on 21 May, the cut-off yield for the 6-month Singapore T-bill climbed to 1.45%, higher than the yield of 1.40% in the previous auction on 7 May.

This would be close to the recent high of 1.47% in the auction on 9 April. 

With the rise in cut-off yield, the Beansprout community has been discussing whether we could see a further rebound in the Singapore T-bill yield.

In this article, I’ll look at some of the latest indicators to help us understand what the upcoming cut-off yield might be.

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

#1 – US 10-year government bond yields have edged higher

The 10-year US government bond yield was at 4.50% as of 28 May 2026, slightly higher than its levels of 4.46% two weeks ago. 

This comes as stronger-than-expected economic data and sticky inflation prompted investors to dial back expectations for near-term Federal Reserve rate cuts.

At the same time, concerns over the widening US fiscal deficit and heavier Treasury issuance weighed on bond markets, putting additional upward pressure on long-term yields.

Likewise, the 1-year US government bond yield edged up to 3.84% as of 28 May 2026, from 3.81% two weeks earlier.

#2 – Singapore government bond yields little changed

The 10-year Singapore government bond yield was at 2.05% as of 28 May 2026, little changed from 2.07% two weeks ago.

This likely reflects sustained demand for Singapore government bonds as a safe haven asset. 

The closing yield on the 6-month T-bill was at 1.41% on 26 May 2026, slightly lower than the cut-off yield of 1.45% in the previous T-bill auction on 21 May.

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 1.40% in the auction on 26 May 2026, also quite close to the cut-off yield of 1.41% on 19 May.

#3 – Issuance size is the same with previous auction

The issuance size of the upcoming 6-month Singapore T-bill is $8.5 billion, same with the previous auction size.

This also represents the highest amount of 6-month Singapore T-bill being auctioned. 

We saw an increase in T-bill applications to S$18.0 billion in the auction on 21 May, from S$17.5 billion in the auction on 7 May. 

If demand continues to rise in the upcoming auction, the same issuance size may lead to a lower cut-off yield in the upcoming auction.

What would Beansprout do?

The closing yield on the 6-month Singapore T-bill was at 1.41% on 26 May 2026, lower than the cut-off yield in the previous auction.

With continued global geopolitical uncertainty, 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. Learn more about the liquidity pot here. 

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 1.41% remains below the best 6-month fixed deposit rate of 1.50% 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 1.41% p.a.

The current issuance of the Singapore Savings Bonds (SSB) offers a 1-year return of 1.46%, and 10-year average return of 2.11% p.a., while offering the flexibility to redeem prior to maturity. 

I compare savings accounts, fixed deposits, T-bills, SSBs and money market funds to find the best places to park your cash in May 2026 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 4 June (Thursday). We would need to put in our cash applications for the T-bills by 9pm on 3 June (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 June (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 3 June (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 2 June (Tuesday). Read our step-by-step guide to applying via UOB.  

Do you prefer to park your cash in T-bills or fixed deposits? Share with us in the comments below or in our Telegram group!

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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