The cut-off yield is the highest yield accepted from successful competitive bids at a Singapore Government Securities auction. Because MAS runs a uniform price auction, all successful bidders — competitive and non-competitive alike — are allotted the security at that single yield.
Key takeaways
- SGS bonds, T-bills and MAS-issued securities are sold through a uniform price auction, so one yield applies to every successful bid.
- A competitive bid names the yield the bidder is willing to accept, to two decimal places; a non-competitive bid names only an amount.
- Non-competitive bids are allotted first, up to 40% of the issuance size, and are pro-rated if they exceed that limit.
- The remaining amount is awarded to competitive bids from the lowest yield upwards until the issue is filled — the last yield accepted is the cut-off yield.
- Auction results, including the average and cut-off yields and the share of applications allotted at the cut-off, are typically released about 2 hours after the auction.
How the cut-off yield is set
Bids at an SGS auction are ranked from the lowest yield to the highest. Non-competitive bids are filled first, up to 40% of the issue. The balance is awarded to competitive bids working up the yield ladder until the issue is exhausted. The yield at which the issue runs out is the cut-off yield, and it is applied to every allotment in that auction. A bid above the cut-off yield is unsuccessful, and bids exactly at the cut-off may be filled only in part.
Cut-off, median and average yields
MAS publishes three yields for each auction. The cut-off yield is the highest accepted yield and is the one that determines what every successful bidder receives. The median yield is the yield corresponding to the median of successful competitive applications, and the average yield is each successful competitive application multiplied by its yield, divided by the total amount of successful competitive applications. Only the cut-off yield affects the return on an allotment.
Allotment limits that shape the outcome
- Overall allotment limit: 15% of the issuance size for non-primary dealers, which covers both institutions and individuals
- Non-competitive limit: a maximum of 40% of the issuance size is allotted to non-competitive applications in total
- Per-application non-competitive limit for non-primary dealers: SGD 1 million per T-bill auction and SGD 2 million per SGS bond auction
What the cut-off yield determines
For a T-bill, the cut-off yield sets the discount price paid at issue and therefore the annualised return to maturity. For a newly issued SGS bond, it sets the coupon rate, which is the cut-off yield rounded down to the nearest 0.125% subject to a floor of 0.125%. MAS also operates an auction safeguard for SGS bonds, which can come into play when the cut-off yield is more than 25 basis points below or above the market yield.
Key cut-off yield figures
| Item | Figure |
|---|---|
| Method of sale | Uniform price auction |
| Cut-off yield | Highest accepted yield of successful competitive bids |
| Non-competitive allotment cap | 40% of issuance size |
| Overall allotment limit, non-primary dealers | 15% of issuance size |
| Bid precision | Yield to 2 decimal places |
Figures as at 2026. Source: MAS.
Worked example
At the 6-month T-bill auction on 16 July 2026 (BS26114W), the cut-off yield was 1.55% p.a. against a median of 1.49% and an average of 1.44%. Every successful bidder, including non-competitive applicants, was allotted at 1.55%, and 44.54% of competitive applications made at the cut-off yield were filled.
Related terms
All Singapore glossary terms →Related calculator
Look up the cut-off yields from recent Singapore T-bill and SGS auctions.
This page is provided for educational and informational purposes only. It does not constitute financial advice. All figures and worked examples are estimates for illustrative purposes, are subject to change, and do not reflect any individual’s circumstances. Always refer to the Monetary Authority of Singapore (MAS) and seek independent professional advice before making any financial decisions.