Singapore Treasury Bills Guide: Best Practices and Tips

Singapore Treasury Bills are short-term, low-risk debt securities issued by the Singapore government through the Monetary Authority of Singapore (MAS).

Backed by strong creditworthiness and high liquidity, they are a favored choice for conservative investors seeking predictable, stable returns over short durations.

In this article, we’ll cover key aspects of T-Bills that matter to prospective expats, investors, and HNWIs including:

• What is a Treasury bill in Singapore?
• How does the Singapore treasury bill work?
• What is the time frame for Treasury bills?
• How much interest do you earn on a treasury bill?
• What are the pros and cons of t bills Singapore?
• How to buy Treasury bills in Singapore

My contact details are hello@adamfayed.com and WhatsApp +44-7393-450-837 if you have any questions.

The information in this article is for general guidance only. It does not constitute financial, legal, or tax advice, and is not a recommendation or solicitation to invest. Some facts may have changed since the time of writing.

What Are Singapore Treasury Bills?

Singapore Treasury Bills (T-Bills) typically have maturities of 6 months or 1 year and are sold at a discount to their face value. Unlike traditional interest-bearing instruments, T-Bills do not pay periodic interest.

Instead, the return is realized through this price difference, making them particularly attractive for individuals seeking predictable, low-risk returns over a short period.

T-Bills differ from Singapore Government Securities (SGS) bonds in several key ways.

SGS bonds are medium- to long-term instruments (typically 2 to 50 years) that pay semi-annual coupon interest, whereas T-Bills are short-term and non-coupon bearing.

T-Bills are also more liquid and often used by institutional investors for cash management, but they are increasingly popular among retail investors for capital preservation and higher yields compared to traditional savings accounts.

How Do Treasury Bills Work in Singapore?

In Singapore, T-Bills are issued and managed by the MAS through regular auctions. Investors pay less than the bill’s maturity amount upfront.

Upon maturity, the government repays the full face value of the T-Bill, and the investor’s return is the difference between the purchase price and the face value.

For example, if you purchase a 6-month T-Bill with a face value of S$10,000 at an issue price of S$9,800, you will receive the full S$10,000 at maturity, earning S$200 in interest.

T-Bills in Singapore currently come in two tenors: 6-month and 1-year.

They are zero-coupon securities, so there are no interim interest payments; returns are entirely capital gains realized upon maturity.

Eligibility to purchase T-Bills includes both individual and institutional investors.

Retail investors can apply through local banks, brokerages, or using their CPF Investment Account (CPFIA) or Supplementary Retirement Scheme (SRS).

Settlement typically occurs two business days (T+2) after the auction date, and the bills are held in the investor’s Central Depository (CDP) account or designated SRS/CPF account.

Investors must ensure sufficient funds are available in their account at the time of application to secure the allotment.

Singapore T-Bill Auction Schedule

Singapore Treasury Bill auctions are typically held every two weeks for the 6-month T-Bills, with occasional 1-year T-Bill issuances scheduled separately.

The auction dates and details—including issue codes, application deadlines, and settlement dates—are announced in advance by the MAS.

Investors can access the latest T-Bill auction schedule through the MAS website.

The site provides a calendar view of upcoming auctions and includes auction announcements and results.

These details are crucial for investors planning to participate, especially since applications must be submitted before the stipulated cut-off time, usually a day before the auction.

Being aware of the auction timetable allows investors to better plan their cash flows and strategize around prevailing interest rate trends or reinvestment opportunities.

Singapore T-Bill Auction Results

Here’s how to interpret the key metrics:

• Cut‑off yield: The lowest yield accepted in the auction, determining the price at which all successful bids are filled.
• Bid‑to‑cover ratio: Indicates demand; calculated as the total bids divided by the amount issued. A higher ratio suggests strong investor interest.

Recent 6‑Month T‑Bill Auction Snapshot

5 June 2025 auction (Issue Code: BS25111T)

• Cut‑off yield: 2.05% p.a.
• Bid‑to‑cover: 2.35 ×

22 May 2025 auction

• Cut‑off yield: 2.20% p.a. (down from 2.30% previously)
• Bid‑to‑cover: ~2.41×, with total bids of S$18.1 billion against S$7.5 billion issued

Market Insights

• A declining cut-off yield signals rising confidence and demand for Singapore treasury bills.
• Yields around 2.05–2.20% now sit below the best 6‑month FD rates, suggesting T‑Bills may be slightly less attractive in yield, though still a competitive low-risk option.
• Strong bid-to-cover ratios (>2×) reflect robust investor demand, often driven by safe-haven seeking amid volatility.

Example interpretation:
When the bid-to-cover hits 2.35× and the cut-off yield drops to 2.05%, it indicates healthy demand and investor willingness to accept slightly lower yields in exchange for capital safety.

Factors Driving Yield Fluctuations

1. Domestic Liquidity Levels – An abundance of SGD in the banking system is keeping short-term interest rates subdued.
2. Global Monetary Policy Outlook – Anticipated U.S. rate cuts are influencing local yields, given Singapore’s linkage to global interest trends.
3. Investor Preference for Safety – Amid heightened market volatility, institutional and retail investors are increasingly allocating to government-backed securities, compressing yields.
4. Issuance and Supply Dynamics – With T-Bill supply relatively steady and capped by the MAS, strong demand continues to exert downward pressure on yields.

Singapore Treasury Bills Interest Rate

Unlike traditional savings or fixed deposit products that offer interest as periodic payments, T-Bills operate on a discount pricing model.

In the context of T-Bills:

• The “interest rate” is not explicitly stated but is effectively baked into the purchase discount.
• The “yield” (specifically the cut-off yield at auction) reflects the annualized return based on the discount and holding period.
• For example, if you purchase a 6-month T-Bill for S$9,900 and it matures at S$10,000, your yield is roughly 2.02% per annum, even though no interest is paid during the term.
• Investors receive no periodic income.
• The return is realized in full at maturity.

Comparison to Other Low-Risk Instruments

• Fixed Deposits (FDs): Pay stated interest at maturity or periodically. As of 2025, some top banks offer 2.35–2.45% p.a. for 6- to 12-month tenors—slightly higher than recent T-Bill yields.
• CPF Special Account (SA): Yields a fixed 4.04% p.a. (as of 2025) but is meant for long-term retirement savings and not liquid.
• Savings Bonds (SSBs): Offer step-up interest over 10 years, starting low but potentially outperforming T-Bills in longer terms.

In short, while T-Bills don’t pay interest in the traditional sense, their implied yield through discounted pricing offers a transparent, low-risk return.

Is It Worth to Invest in T-Bills in Singapore?

Whether T-Bills are worth investing in depends largely on your financial goals, liquidity needs, and available alternatives.

These instruments continue to attract a broad range of investors thanks to their combination of government-backed safety, short maturity periods, and predictable returns.

Treasury Bills Pros

• Principal Safety: Backed by the Singapore government, T-Bills are considered virtually risk-free.
• Short-Term Commitment: Maturities of 6 or 12 months allow for flexibility and reallocation based on changing interest rates.
• Predictable Returns: Yield is locked in at the time of purchase, offering clarity for planning.
• Low Entry Requirement: Investors can start with as little as S$1,000, making them accessible to retail investors.
• CPF Usage: CPF Ordinary Account (OA) funds can be used to purchase T-Bills, offering a way to potentially outperform the OA’s base interest of 2.5% p.a.

Treasury Bills Cons

• No Early Liquidity: Funds are locked until maturity unless sold on the secondary market, which may be illiquid.
• Lower Yields vs Alternatives: While yields are competitive, fixed deposits or high-interest savings accounts may occasionally offer better returns, especially for larger sums or promotional rates.
• No Regular Income: T-Bills pay no interest during the holding period—returns are only realized at maturity, making them less attractive for income-focused investors.

How to Buy T-Bills in Singapore

Purchasing Singapore T-Bills is a straightforward process, and individuals can do so using cash, CPF OA funds, or SRS funds.

Here’s a breakdown of the most common methods to invest:

1. Via Internet Banking (DBS, OCBC, UOB)

Most retail investors use internet banking with one of the three local banks to apply for T-Bills:

Steps:

• Log in to your internet banking account.
• Navigate to “Singapore Government Securities” or “T-Bills Application.”
• Select the tenor (6-month or 1-year) and input the investment amount.
• Choose your funding source: Cash, SRS, or CPF OA (if supported).
• Confirm your details and submit your bid.

Important Notes:

• Cash bids are typically deducted a day before auction.
• CPF OA and SRS applications must be submitted earlier (2–3 working days prior).
• The minimum investment is S$1,000, in multiples of S$1,000.

2. Through a CDP Account via SGX

Singapore T-Bills can also be bought and sold on the secondary market via a CDP account, though this is less common for short-term investors.

Steps:

• Have a CDP account and a brokerage account linked to it.
• Monitor available T-Bills on SGX’s fixed income board.
• Place a buy order through your broker like you would for a stock.

Considerations:

• Prices and yields may differ from those at auction.
• Liquidity on the secondary market is limited compared to primary auctions.

3. Using CPF OA or SRS Funds

CPF and SRS investors must apply via their respective agent banks (DBS, OCBC, UOB):

CPF OA Applications:

• Must be done through internet banking under the T-Bill application section.
• Applications close roughly two working days before the auction.
• Ensure sufficient funds in your CPF OA and set aside limits accordingly.

SRS Applications:

• Log in to your SRS account and apply in a similar way to cash bids.
• Application cut-off is also two working days before auction.

Application Periods and Minimum Amounts

• Auction Announcements: Typically released every Thursday, detailing auction dates, tenors, and issuance amounts.
• Cash Applications: Usually close one working day before the auction.
• CPF/SRS Applications: Close two to three working days before.
• Minimum Amount: S$1,000 per application, with increments in multiples of S$1,000.

How to Redeem Singapore Treasury Bills

Unlike some bonds, they do not pay periodic interest and cannot be redeemed early by retail investors.

Here’s how the redemption process works:

1. Automatic Redemption at Maturity

T-Bills are automatically redeemed when they mature.

There is no need for investors to take any action; the principal amount (i.e., the face value of the T-Bill) is credited in full to the account from which the funds were originally sourced.

This includes:

• Cash investments: Funds are returned to your linked bank account.
• CPF OA or SRS investments: Redemption proceeds are credited back to your CPF OA or SRS account respectively.

2. No Secondary Market Redemption for Most Investors

While T-Bills are technically tradable on the SGX secondary market, this is not a common route for individual retail investors.

Liquidity can be low, and prices may not reflect the best value, particularly given the short tenor of the bills.

For most retail investors, holding T-Bills to maturity is the standard and most practical approach.

3. No Early Redemption Option

It’s important to note that T-Bills cannot be redeemed early under any circumstance.

Once you’ve made a purchase, the capital is locked in until maturity.

As such:

• Consider your cash flow needs before committing.
• Avoid using funds you might need in the near term.

Conclusion

Singapore Treasury Bills remain a practical, low-risk tool for short-term capital allocation, particularly in a shifting interest rate environment.

While they offer modest returns compared to riskier assets, the predictability and government backing make them attractive for conservative investors and strategic CPF or SRS planning.

To make the most of T-Bill investments in 2025, it’s essential to monitor current yield movements, auction schedules, and evolving liquidity conditions.

Staying informed empowers investors to act confidently whether you’re aiming to preserve capital, optimize cash flow, or enhance portfolio resilience through secure, short-duration instruments.

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Adam is an internationally recognised author on financial matters with over 830million answer views on Quora, a widely sold book on Amazon, and a contributor on Forbes.