{"id":23832,"date":"2025-12-28T20:58:37","date_gmt":"2025-12-28T12:58:37","guid":{"rendered":"https:\/\/sgbuzz.com\/?p=23832"},"modified":"2025-12-28T20:58:37","modified_gmt":"2025-12-28T12:58:37","slug":"heres-what-to-expect-for-the-t-bill-auction-on-31-december","status":"publish","type":"post","link":"https:\/\/sgbuzz.com\/?p=23832","title":{"rendered":"Here’s what to expect for the T-bill auction on 31 December"},"content":{"rendered":"


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<\/p>\n

What happened?<\/h2>\n

The next 6-month Singapore T-bill auction (BS26100A)<\/a> will be on 31 December 2025.<\/p>\n

In the most recent auction on 18 December, the cut-off yield for the 6-month Singapore T-bill bounced to 1.48%<\/a> from 1.41% in the previous auction.<\/p>\n

This led to renewed interest in the Singapore T-bill, with questions in the Beansprout community<\/a> about whether we will se a further increase in the T-bill yield in the upcoming auction.<\/p>\n

In this article, I\u2019ll 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<\/a>.<\/p>\n

\"6month
Source: MAS<\/figcaption><\/figure>\n

Here’s what to expect for the Singapore T-bill auction on 31 December\u00a0<\/strong><\/span><\/h2>\n

#1 \u2013 US 10-year government bond yields remains steady<\/h3>\n

The 10-year US government bond yield was at 4.13% as of 27 December 2025, \u00a0close to the yield of 4.19% from two weeks ago. \u00a0<\/p>\n

US government bond yields appeared to have stabilised, after the Fed cut rates as expected in its December meeting.\u00a0<\/a><\/p>\n

\"US10YR
Source: Tradingview<\/figcaption><\/figure>\n

The 1-year US government bond yield was at 3.49% as at 13 December 2025, also close to 3.53% from two weeks ago.<\/p>\n

\"us01yr
Source: TradingView<\/figcaption><\/figure>\n

#2 \u2013 Singapore government bond yields remains steady<\/h3>\n

The 10-year Singapore government bond yield was at 2.31% as of 27 December 2025, similar to 2.33% from two weeks ago.\u00a0<\/p>\n

This is consistent with the stabilisation in US 10-year government bond yields in recent weeks.\u00a0<\/p>\n

\"sg10y
Source: TradingView<\/figcaption><\/figure>\n

The closing yield on the 6-month T-bill was 1.45% on 26 December 2025, \u00a0close to the cut-off yield of 1.48% in the previous T-bill auction on 18 December<\/a>.<\/a>\u00a0<\/p>\n

\"image
Source: MAS<\/figcaption><\/figure>\n

T<\/span>he yield on the 3-month MAS bill can also indicate the yields for shorter-maturity Singapore government bonds.<\/p>\n

The\u00a0cut-off yield was at 1.61%<\/a> in the auction on 23 December 2025, rising further from \u00a0the yield of 1.44% in the auction on 16 December 2025 and yield of 1.55% in the auction on 9 December 2025.<\/p>\n

\"image<\/p>\n

#3 \u2013\u00a0Issuance size lower than the previous auction<\/strong><\/p>\n

The issuance size of the upcoming 6-month Singapore T-bill is $7.8 billion, slightly lower than the previous auction size of $7.9 billion.<\/p>\n