Singapore T-Bill Yield Expected to Hold Near 1.7 Percent
The 6-month Singapore T-bill cut-off yield is poised to remain at 1.7 percent. This follows a recent Federal Reserve rate hike and rising US bond yields.
The closing yield on the 6-month Singapore T-bill stood at 1.68 percent on 17 September 2026. The next auction takes place on 24 September.
The previous auction on 10 September set a cut-off yield of 1.7 percent. This marked the highest level for this instrument in 2026.
US rate hike drives global yields
The US Federal Reserve raised interest rates by 25 basis points on 16 September. The new range is 3.75 percent to 4.00 percent.
This is the first rate hike since July 2023. The 10-year US government bond yield rose to 4.95 percent. It had been 4.76 percent two weeks prior.
The 1-year US government bond yield also increased. It reached 4.38 percent from 4.11 percent in the same period.
Local bond yields trend upward
The 10-year Singapore government bond yield reached 2.50 percent. It was 2.43 percent two weeks earlier.
The 3-month MAS bill cut-off yield hit 1.74 percent on 15 September. The previous auction on 8 September recorded 1.6 percent.
Auction size and bid dynamics
The upcoming issuance size is 8.4 billion Singapore dollars. This matches the volume from the 10 September auction.
Applications totaled 16.6 billion Singapore dollars in the last auction. This was lower than the 16.8 billion seen on 27 August.
