Singapore 6-month T-bill cut-off yield slides to 1.41%

[SINGAPORE] The latest cut-off yield on Singapore’s six-month Treasury bill (T-bill) slipped to 1.41 per cent, according to auction results released by the Monetary Authority of Singapore on Thursday (Oct 23).

This was a decrease from the 1.44 per cent offered in the previous six-month auction that closed on Oct 9, where the cut-off yield plateaued after having fallen for most of 2025.

The latest auction received a total of S$15.9 billion in applications for the S$7.9 billion on offer, representing a bid-to-cover ratio of 2.01. In comparison, the previous auction received a total of S$14.8 billion in applications for the S$7.8 billion on offer, translating to a 1.9 bid-to-cover ratio.

The median yield for the latest auction fell to 1.35 per cent from 1.38 per cent in the last round. The average yield was unchanged at 1.29 per cent.

All non-competitive bids were allotted, amounting to S$1.1 billion, while around 12 per cent of competitive applications at the cut-off yield were allotted.

DBS senior rates strategist Eugene Leow said: “The cut-off yield is modestly lower than the last six-month auction as investors gear up for two more (US Federal Reserve) cuts this year. Pass-through from Fed cuts to lower Singapore dollar rates should continue to be muted.”

BT in your inbox

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign Up

Sign Up

Cheong Wei Ming, portfolio manager for fixed income at Eastspring Investments, noted that continued easing by the Fed is expected to influence local rates and keep Singapore dollar interest rates in check, limiting the potential for any significant upside moves.

“We expect Singapore interest rates to remain range-bound and low during this year-end period, supported by ample liquidity in the financial system,” he said.  

Frances Cheung, head of foreign exchange and rates strategy at OCBC, noted that the cut-off yield is “in line with (the) market traded short-end Singapore dollar interest rate, which has stayed at a relatively low level”.

SEE ALSO

Morningstar picks these higher-yielding income funds as lower rates weigh on investors

“Demand was decent thanks to the still-flush Singapore dollar liquidity. Over the medium term, we expect some upward normalisation in Singapore dollar interest rates, but this expected adjustment is likely to be slow,” Cheung added.

Singapore will issue up to another S$450 billion in government securities, with a parliamentary motion having been passed last November to raise the government’s issuance limit to S$1.515 trillion, from S$1.065 trillion previously. The new limit is expected to last until 2029.