Here's what to expect for the T-bill auction 9 October

What happened?

The next 6-month Singapore T-bill auction (BS25120N) will be on 9 October 2025.

After the cut-off yield for the most recent 6-month Singapore T-bill bounced to 1.44%, some of you may be wondering if we will see a further increase in the T-bill yield. 

After all, many investors continue to use Singapore T-bills as a way 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 if its still be worthwhile applying for the T-bills. 

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Here's what to expect for the Singapore T-bill auction on 9 October

#1 – US bond yields have stabilised 

The 10-year US government bond yield has stayed above 4.0% in the past week, after dipping to about 4.0% in anticipation of interest rate cuts by the US Federal Reserve.

As of 3 October 2025, the 10-year US government yield was at 4.09%, close to the level of 4.13% as of 18 September 2025.

Likewise, the 1-year US government bond yield has hovered at around 3.6%, close to where it was two weeks ago.

#2 – Singapore bond yields bounced slightly

The 10-year Singapore government bond yield was at 1.91% as of 3 October 2025, representing a bounce from 1.79% as of 24 September 2025.

The closing yield on the 6-month T-bill was 1.40% on 3 October 2025,  which is close to the cut-off yield of 1.44% in the previous T-bill auction on 25 September.

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 1.46% in the auction on 30 September 2025, also above the yield of 1.42% in the auction on 23 September 2025.

#3 – Issuance size higher than the previous auction

The issuance size of the upcoming 6-month Singapore T-bill is $7.8 billion, above the previous auction size of $7.7 billion.

We saw a decrease in the amount of T-bill applications to S$13.5 billion in the auction on 25 September 2025 from S$15.7 billion in the auction on 11 September 2025.

If demand declines compared to the previous auction, the higher amount of T-bill issued may cause the cut-off yield to rise in the upcoming auction.

What would Beansprout do?

The closing yield on the 6-month Singapore T-bill was at 1.40% on 3 October 2025, as US and Singapore government bond yields seem to have found some support in the past week.

The closing yield on the 6-month Singapore T-bill is on par with the best 6-month fixed deposit rate of 1.40% p.a.

It would also be quite close to the 1-year return of 1.39% on the latest Singapore Savings Bonds (SSBs).

However, we were still able to find savings accounts in Singapore that offer an interest rate of above 1.40% p.a. For example, the DBS Multiplier promo allows new Multiplier customers to earn up to 2.5% p.a. on the first S$100,000. 

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.

[Beansprout Exclusive Longbridge Promotion] Get bonus S$50 FairPrice voucher, S$18 cash voucher, plus 2x6% p.a. interest boost on S$2,000 with Longbridge Cash Plus for 90 days (worth up to S$60) when you sign up for a Longbridge account via Beansprout and fund S$2,000. T&Cs apply. Learn more about the Longbridge promotion here. 

Stay updated on the T-bill

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The 6-month Singapore auction will be held on 9 October (Thursday). We would need to put in our cash applications for the T-bills by 9 pm on 8 October (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 8 October (Wed). Read our step-by-step guide to applying via DBS.
• Application for T-bills online using CPF OA via OCBC close at 9pm 8 October (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 7 October (Tues). 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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