The US Federal Reserve held its benchmark federal funds rate steady at 3.75%–4.00% on October 28–29, 2026, with two hawkish dissenters voting for an immediate hike. For Singapore investors managing T-bills, CPF, SSBs, and S-REITs, this “hold with a hawkish tilt” means rate cuts are off the table for now — and the higher-for-longer environment is your friend if you know where to look.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. All investments carry risk. Please do your own due diligence or consult a licensed financial adviser before making any investment decisions. Data verified as at 29 October 2026.
What Happened at the October 2026 FOMC Meeting?
The Federal Open Market Committee (FOMC) voted 8–2 to hold the federal funds rate at 3.75%–4.00% on October 28–29, 2026. Two members — reportedly hawkish regional Fed presidents — dissented in favour of an immediate 25 basis point hike, citing persistent services inflation and a still-tight labour market.
Fed Chair Jerome Powell’s post-meeting statement acknowledged that while headline inflation has moderated, core PCE inflation remains above the 2% target. The Fed is in no rush to cut rates, but the two dissenters signal that another hike is squarely on the table if inflation re-accelerates.
Key takeaways from the statement:
- Rate held at 3.75%–4.00% — the fourth consecutive hold
- Two hawkish dissenters pushing for an immediate hike
- No rate cut signals in the near-term dot plot
- US 10-year Treasury yield surged to 5.02% post-announcement
- Next FOMC meeting: December 10–11, 2026
Singapore Fixed Income: Where to Park Your Cash Now
With US rates staying elevated, Singapore’s fixed-income landscape remains attractive — though yields have softened slightly from 2024 peaks. Here’s how the key instruments stack up as of October 2026:
| Instrument | Current Rate / Yield | Liquidity | Min Investment |
|---|---|---|---|
| CPF SA / RA / MA | 4.00% p.a. | Locked until retirement | N/A |
| CPF OA | 2.50% p.a. | Can invest via CPFIS | N/A |
| SSB (10-yr avg) | ~2.45% p.a. | Redeemable monthly | S$500 |
| 12-Month Fixed Deposit | ~2.10% p.a. | Lock-in 12 months | Varies by bank |
| 6-Month Fixed Deposit | ~2.05% p.a. | Lock-in 6 months | Varies by bank |
| 6-Month T-Bill | ~1.95% p.a. | Locked till maturity | S$1,000 |
| 3-Month Fixed Deposit | ~1.75% p.a. | Lock-in 3 months | Varies by bank |
| SSB (Year 1) | ~1.67% p.a. | Redeemable monthly | S$500 |
For CPF members, the CPF SA/RA/MA rate of 4.00% p.a. remains unbeatable among risk-free, government-backed instruments. If you haven’t maxed out your CPF SA top-ups for 2026, now is a good time — you’ll lock in that 4% while the rate environment stays elevated.
What the US 10-Year at 5.02% Means for S-REITs
The surge in the US 10-year Treasury yield to 5.02% post-announcement is the bigger story for Singapore REIT investors. When US risk-free rates rise, S-REIT yield spreads come under pressure — and unit prices often fall as a result.
Despite the headwinds, Singapore REITs continue to offer attractive distribution yields relative to local benchmarks:
- CapitaLand Ascendas REIT (CLAR): ~6.1% distribution yield
- Mapletree Pan Asia Commercial Trust (MPACT): ~6.2% distribution yield
- Mapletree Logistics Trust (MLT): ~6.2% distribution yield
- S-REIT sector average: ~6.4% distribution yield
The yield spread between the S-REIT average (~6.4%) and the Singapore 10-year benchmark (~2.42%) remains around 4 percentage points. For a deeper dive on individual REIT picks, see our Singapore REITs beginner guide.
T-Bill Strategy: What to Do at the Next Auction
The next Singapore 6-month T-bill auction is expected in early November 2026. With the Fed on hold and the US 10-year at 5.02%, the SGD-USD interest rate differential has widened slightly. Current 6-month T-bill cut-off yield: ~1.95%.
TKN’s T-bill playbook for November:
- Use non-competitive bids if you want certainty of allocation
- Check CPF-OA T-bill applications via CPFIS
- Keep an eye on the 3-month T-bill for shorter lock-in
For step-by-step instructions, read our complete guide to buying Singapore T-bills.
SSB November 2026: Still Worth It?
The October 2026 SSB offered a first-year rate of ~1.67% and a 10-year average of ~2.45%. The November issue opens in the first week of November. SSBs remain attractive for investors who want flexibility without lock-in penalties or those laddering fixed-income holdings. However, if you can tolerate the lock-in, 12-month fixed deposits at ~2.10% or CPF top-ups (4.00%) offer better headline yields. Learn more in our SSB complete guide.
Bottom Line for SG Investors
The Fed’s October 2026 hold — with two hawkish dissenters — confirms that the higher-for-longer rate environment is here to stay, at least into Q1 2027. Here’s TKN’s quick summary playbook:
- CPF SA/RA/MA: Maximise top-ups. 4.00% guaranteed, can’t beat it.
- T-bills: Still decent at ~1.95%. Apply non-competitive for certainty.
- SSBs: Good for flexibility. Lower yield but no lock-in risk.
- S-REITs: Attractive yield at ~6.4% sector average, but sensitive to US 10Y moves.
- Fixed Deposits: 12M at ~2.10% beats T-bills if you can handle the lock-in.
The two hawkish dissenters are the wildcard to watch. If the December FOMC meeting sees a surprise hike, expect renewed volatility in S-REITs and a modest boost to T-bill and SSB rates. Stay tuned to TKN’s news section for the latest.
Frequently Asked Questions
What did the Fed decide at the October 2026 FOMC meeting?
The FOMC voted 8-2 to hold the federal funds rate at 3.75%–4.00%. Two members dissented in favour of an immediate 25bp rate hike, signalling a hawkish tilt.
How does the Fed rate hold affect Singapore T-bill rates?
With the Fed on hold and US 10-year yields elevated at 5.02%, T-bill rates have some support. The current 6-month T-bill yield is approximately 1.95% p.a.
Are S-REITs a good investment when the Fed holds rates high?
S-REITs face headwinds when US long-term rates are high. However, the S-REIT sector average yield of ~6.4% still offers a meaningful spread over local benchmarks. Focus on REITs with strong balance sheets and manageable debt maturities.
Should I buy SSBs or T-bills in November 2026?
T-bills offer slightly higher rates (~1.95% for 6M) but lock your money until maturity. SSBs offer ~2.45% 10-year average with monthly redemption flexibility. Choose T-bills if you don’t need the money for 6 months; SSBs if you want flexibility.
What is the current CPF interest rate in October 2026?
CPF OA earns 2.50% p.a., while CPF SA, RA, and MA earn 4.00% p.a. Members also receive 1% extra interest on the first S$60,000 of combined CPF balances.
Will the Fed cut rates in December 2026?
A December rate cut appears very unlikely given the hawkish tilt. Market consensus is for another hold, with a small probability of a hike if inflation surprises. Rate cuts are not expected until at least mid-2027.
How do I apply for Singapore T-bills as a retail investor?
Apply via internet banking (DBS, OCBC, UOB) or ATMs linked to your CDP account. Applications open 1-2 weeks before each auction. You can bid competitively or non-competitively (accepting the cut-off rate with guaranteed allocation).
What happens to my fixed deposit if the Fed raises rates again?
If the Fed raises rates, Singapore bank FD rates may edge higher. If you’ve locked in a 12-month FD at ~2.10%, you’ll miss out on any increase. Consider laddering FDs (3M + 6M + 12M) to maintain flexibility while capturing higher rates.
This article was researched with the help of AI. While we strive to keep all information accurate and up to date, there may be errors. If you notice any discrepancies, please contact us.
