{"id":70189,"date":"2026-07-20T15:54:59","date_gmt":"2026-07-20T07:54:59","guid":{"rendered":"https:\/\/sgbuzz.com\/?p=70189"},"modified":"2026-07-20T15:54:59","modified_gmt":"2026-07-20T07:54:59","slug":"heres-what-to-expect-for-the-1-year-t-bill-auction-on-23-july","status":"publish","type":"post","link":"https:\/\/sgbuzz.com\/?p=70189","title":{"rendered":"Here’s what to expect for the 1-year T-bill auction on 23 July"},"content":{"rendered":"


\n<\/p>\n

<\/p>\n

What happened?<\/h2>\n

The Singapore T-bill yield has been steadily rising over the past few months.<\/p>\n

The latest yield on the 6-month Singapore T-bill reached 1.55% in the latest 6-month T-bill auction.<\/a><\/p>\n

Likewise,\u00a0fixed deposit rates in Singapore have also started to climb higher again.<\/a><\/p>\n

This has sparked some discussion in the\u00a0Beansprout community<\/a> about where is the best place to park cash for higher yields.<\/a><\/p>\n

In this article, I will I will be looking at some of the latest indicators to find out if it is worthwhile applying for the upcoming\u00a01-year Singapore T-bill auction (BY26102T)<\/a> on 23 July 2026, and how it compared to the 6-month Singapore T-bill and fixed deposits.\u00a0<\/p>\n

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

What is the likely yield on the 1-year Singapore T-bill?<\/h2>\n

Like the 6-month Singapore T-bill yield, the 10-year Singapore government bond yield has fluctuated in recent months.\u00a0<\/span><\/p>\n

After falling to around 1.75% in September 2025, the Singapore 10-year government bond yield climbed to about 2.41% at the end of March 2026 amid heightened Middle East tensions and concerns that higher oil prices could add to inflation.<\/p>\n

The yield subsequently eased before rising again to about 2.22% as of 17 July 2026.<\/p>\n

These movements reflect changing expectations for US interest rates and inflation, as well as shifts in demand for government bonds amid geopolitical uncertainty.<\/p>\n

\"Singapore<\/a>
Source: Beansprout, MAS<\/figcaption><\/figure>\n

Likewise, we have seen less significant movements for the 1-year Singapore T-bill yield.\u00a0<\/p>\n

The closing yield on the 1-year T-bill was 1.45% as of 17 July 2026, <\/strong>hovering near the 1.46% cut-off yield seen in the April 1-year T-bill auction<\/a>.<\/p>\n

\"t-bill
Source: MAS<\/figcaption><\/figure>\n

However, it is worth noting that the eventual cut-off yield in the auction may differ from the closing yield, as it will depend on the bids in the auction.<\/span><\/p>\n

From the past few rounds of the 1-year T-bill auctions, we can see that demand for the T-bill has been fairly elevated.\u00a0<\/span><\/p>\n

This has put pressure on the cut-off yield of the 1-year T-bill.<\/span><\/p>\n

\"1-year
Source: MAS<\/figcaption><\/figure>\n

Buying Singapore 1-year T-bill \u2013 better than 6-month T-bill?<\/h2>\n

Rather than applying for the 1-year T-bill, one option to consider is to invest in two consecutive tranches of 6-month T-bills.<\/span><\/p>\n

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.<\/span><\/p>\n

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 <\/span>at that time.<\/p>\n

You can find out how to to construct a T-bill and SSB bond ladder here.\u00a0<\/a><\/p>\n

However, it is now less certain whether we will see further interest rate cuts, or potentially interest rate hikes in the next 6 months.\u00a0<\/span><\/p>\n