Here’s what to expect for the 1-year T-bill auction on 23 July

Specifically, we could invest in the upcoming 6-month T-bill auction on 30 July 2026, and reinvest the funds again when the T-bill matures in February 2027.

If we apply for the next 6-month T-bill which will be issued on 4 August the maturity date would be on 2 February 2027. We could then choose to reinvest based on the prevailing interest rates at that time.

You can find out how to to construct a T-bill and SSB bond ladder here. 

However, it is now less certain whether we will see further interest rate cuts, or potentially interest rate hikes in the next 6 months. 

With the current closing yield of 1.45% on the 1-year Singapore T-bill being lower than the cut-off yield of 1.55% in the most recent 6-month T-bill auction, I will ask myself if I would want to lock in this lower rate now for 12 months.

According to the latest US interest rate expectations, markets now expect the US Federal Reserve to keep interest rates unchanged at its July meeting. However, by December 2026, futures pricing suggests about a 75% probability of at least one 0.25 percentage point rate hike, with the most likely target range rising to 3.75% to 4.00%.

With significant economic uncertainty with global geopolitical developments, we will have to keep a close watch on interest rate trends.

Buying 1-year T-bill using cash – better than fixed deposit?

Some Singapore banks have raised their fixed deposit rates in July. Currently, the best 1-year fixed deposit rate we found is at 1.60% p.a. 

This would be higher than the latest closing yield of 1.45% on the 1-year T-bill.

For shorter tenures, the best 6-month fixed deposit rate is at 1.50% p.a and the best 9-month fixed deposit rate is at 1.52% p.a.

Buying 1-year T-bill – better than Singapore Savings Bonds?

The current issuance of the Singapore Savings Bonds (SSB) offer a 1-year return of 1.46%.

This is close to the current closing yield on the 1-year Singapore T-bill.

Apart from offering a 1-year return of 1.46%, the latest SSB also allows us to lock-in a rate of 2.06% over 10 years, while having the flexibility to redeem prior to maturity. 

What would Beansprout do?

With the recent global geopolitical tensions, 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.

Then, I would see how I can earn a higher yield on this pot of emergency cash, while maintaining the liquidity I may need.

The current closing yield of the 1-year Singapore T-bill is 1.45%, which is lower than the recent 6-month T-bill cut-off yield of 1.55%.

As a result, I would not apply for the 1-year T-bill purely to earn the highest available yield.

However, I may still consider it if I value the certainty of fixing my return for 12 months and do not want to make another reinvestment decision when a 6-month T-bill matures.

At the same time, the 1-year T-bill closing yield is also lower than the best 1-year fixed deposit rate, which is currently at 1.60% p.a.

One of the other options to consider is the Singapore Savings Bonds (SSB), which offers a 1-year return of 1.46% and average annual return of 2.06% over 10 years, while having 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 July 2026 here.

Ultimately, the best option depends on whether I prioritise a locked-in yield today, or greater flexibility for my cash.

By finding the best place to park my cash, I know that I have a stable base for the rest of my portfolio.

With this liquidity pot properly set up, I can stay invested through market ups and downs without worrying about being forced to sell my investments at the wrong time. Learn more about the liquidity pot here. 

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The 1-year Singapore T-bill auction is currently open.

As cash applications for the T-bill close one business day before the auction date, we would need to put in our cash applications for the T-bill by 9pm on 22 July (Wednesday).

Applications for the T-bill using CPF-OA will close 1-2 business days before the auction date, and the dates differ across the three local banks.

To learn more about T-bills and find out how to apply, check out our comprehensive guide to T-bills.

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