Here's what to expect for the T-bill auction on 7 May

What happened?

The next 6-month Singapore T-bill auction (BS25109V) will be coming up on 7 May 2025.

In the previous auction, the cut-off yield for the 6-month Singapore T-bill further declined to 2.38%. The cut-off yield on the 1-year Singapore T-bill also fell to 2.29% recently. 

However, demand for the Singapore T-bill has remained high despite the lower T-bill yields.

If you're wondering if it might be still worthwhile investing in the T-bill,  I will share some of the latest indicators to find out what might be the cut-off yield for the upcoming T-bill auction. 

Stay updated on the T-bill

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

Subscription preferences

• Reminder for Tbill

Here's what to expect for the Singapore T-bill auction on 7 May

#1 – US bond yields are at similar levels to two weeks ago

The 10-year US government bond yield was at 4.3% as of 2 May 2025, little changed from where it was two weeks ago. 

There appears to be more signs of stabilisation in the market, following the sharp sell-off in US government bonds after sweeping tariffs were announced by US President Donald Trump.

Yields on shorter-term US government bonds have also been little changed in the past two weeks.  

The 1-year US government bond yield was at 4.0% as of 2 May, also quite similar to where it was two weeks ago. 

#2 – Closing yield on 6-month Singapore T-bill has declined slightly

Singapore's government bond yields have continued to decline even as US government bond yields stabilised in recent weeks. 

As of 30 April 2025, the yield on the 10-year Singapore government bond stood at 2.47%, declining further from 2.56% as of 17 April. 

The closing yield on the 6-month T-bill was 2.36% on 30 April , slightly below the cut-off yield of 2.38% in the previous T-bill auction on 24 April.

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 2.48% in the auction on 22 April, bouncing slightly from 2.45% in the auction on 15 April. 

#3 – No change in issuance size compared to the previous auction

The issuance size of the upcoming 6-month Singapore T-bill is $7.4 billion, unchanged from the previous auction. 

We saw a slight dip in the amount of T-bill applications, falling to S$16.6 billion in the auction on 24 April, down from S$17.2 billion on 10 April.

If demand continues to weaken, we may see some support for the cut-off yield in the upcoming T-bill auction.

What would Beansprout do?

The closing yield on the 6-month Singapore T-bill was at 2.36% on 30 April, slightly lower than the cut-off yield of 2.38% in the previous auction.

This came as Singapore government bond yields have declined further amid sustained demand.

The closing yield on the 6-month Singapore T-bill yield is now slightly below the best 6-month fixed deposit rate of 2.40% 

However, bond yields globally remain highly volatile with uncertainty on the trade tariffs, and the cut-off yield in the T-bill auction will depend on the eventual demand for the T-bill.  

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. 

For example, many in the Beansprout community have been discussing the UOB Stash account, which offers an interest rate of up to 3.0% p.a. for $100,000 of deposits.

And the MariBank Savings Account offers an interest rate of 2.28% for deposits up to S$100,000. 

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.

Due to the upcoming public holiday, the 6-month Singapore auction will be held on 7 May (Wednesday). We would need to put in our cash applications for the T-bills by 9 pm on 6 May (Tuesday).

Stay updated on the next T-bill

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

Subscription preferences

• Reminder for Tbill

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 6 May (Tue). Read our step-by-step guide to applying via DBS.
• Application for T-bills online using CPF OA via OCBC close at 9pm 6 May (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 5 May (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.

Join our Beansprout Telegram group for the latest insights on Singapore stocks, REITs, bonds and ETFs.