What are Singapore T-bills?

The short version

A Treasury bill, or T-bill, is a short-term debt security issued by the Singapore Government. It is one type of Singapore Government Securities (SGS) and is administered by the Monetary Authority of Singapore (MAS).

Singapore issues T-bills in two tenors: a 6-month T-bill and a 1-year T-bill. Both are short-term, which is the main thing that separates them from longer SGS bonds and from the Singapore Savings Bond.

Issued at a discount, redeemed at par

T-bills are zero-coupon instruments. That means they do not pay periodic interest. Instead, you buy the bill at a discount to its face value and receive the full face value at maturity.

For example, if a 6-month T-bill is issued at a price that works out to a 3% yield, you would pay roughly S$98.50 for every S$100 of face value and receive S$100 six months later. The difference is your return. The exact price depends on the yield set at the auction.

The minimum investment is S$1,000, and you apply in multiples of S$1,000.

Why savers consider T-bills

T-bills are often used by savers who want a short, government-backed place to park cash. Because they are issued by the Singapore Government, they carry very low credit risk.

For individuals, the return on SGS — including T-bills — is exempt from Singapore income tax. That is a meaningful point compared with some other cash instruments, though tax rules can change, so confirm your own position.

The trade-off is that your money is committed until maturity (6 or 12 months), the yield is only known after the auction, and returns move with prevailing interest rates.

Where to confirm the latest details

This page explains the mechanics, not today's numbers. Yields, the auction calendar and application rules are published by MAS. Always check the official MAS bonds-and-bills pages before you apply.