I'm not sure if I understand your question. The expression -a^2+a^2y-yb^2
is not positive under the conditions you defined (a,b,s, and y >0). But if you are sure that this somehow is I would suggest you to try:
Assuming[-a^2 (-1 + y) + b^2 y > 0, Simplify[T]]
giving:
(b s^3 (-1+2 y) (a+2 b y))/(Sqrt[s^2] Sqrt[s^2 (b^2 (1-2 y)^2 y-a^2 (-1+y-4 y^2+4 y^3))] Abs[b])