treasury bills singapore

Treasury Bills Singapore 2023: Current 6-month T-Bills Rate

T-Bills are short-term debt securities issued by the Singapore government through the Monetary Authority of Singapore (MAS). They are considered a low-risk investment option and are backed by the full faith and credit of the Singapore government, providing a guaranteed return at maturity. 

In this guide, we will explore how T-Bills work in Singapore, the pros and cons of investing in them, and how to buy and sell them. We will also compare T-Bills with other Singapore government bonds and bills and provide tips on investing in T-Bills. Keep reading to learn more.

Current 6-month T-Bills Rate

The table shows the current yields for 6-month and 1-year treasury bills as of April 2023. 

The T-Bills Rate is important for investors and financial analysts as it provides an indication of the prevailing interest rates in the market and the creditworthiness of the Singapore government.

Type of Treasury Bill

Current Yield


3.81% p.a.


3.74% p.a.


What are Treasury Bills?

As mentioned above, Treasury Bills (T-Bills) are short-term debt securities issued by the Singapore government to finance its operations. In Singapore, T-Bills are issued by the MAS on behalf of the government, with maturities ranging from 6 to 12 months or 1 year. At maturity, the government pays back the face value, providing a return for the investor.

The auction for the bills is conducted every month, and investors can bid for the bills through Primary Dealers appointed by MAS. The bills are traded in the secondary market, which provides investors with the flexibility to sell their holdings before maturity.

T-Bills are considered a low-risk investment as they are backed by the full faith and credit of the Singapore government. They are also highly liquid and are commonly used as a short-term investment option by individuals, financial institutions, and corporations.

How do Treasury Bills Work In Singapore?

Treasury bills (T-bills) in Singapore work by allowing the government to borrow money from investors for a short period of time. The T-bills are issued by the Monetary Authority of Singapore (MAS) on behalf of the government and are sold at a discount from their face value. The difference between the purchase price and the face value of the T-bill is the yield.

Investors, such as banks and financial institutions, can purchase T-bills through the MAS auction or through a primary dealer or brokerage firm. The primary dealers bid for the T-bills at the auction, and the MAS awards the bills to the highest bidders. Individuals and corporations can purchase T-bills through a primary dealer or brokerage firm.

T-bills have a maturity period of 91 days, 182 days, or 364 days, after which the holder of the T-bill will receive the face value of the bill. At maturity, the government will pay the holder of the T-bill the face value of the bill, which is typically SGD 1,000 or multiples thereof.

The yield on T-bills is determined by the market demand for the bills and the prevailing interest rates. The yield on T-bills is generally lower than other types of fixed income securities because they are considered to be a low-risk investment option with a guaranteed return.

Business man receiving money

Pros and Cons of T Bills

Like other investment tools, you should evaluate whether it is feasible to invest in treasury bills based on your investing preferences, risk tolerance level and personal horizon. 

A detailed financial review is necessary to determine your suitability. However, you may find the following information useful for your investment decisions.


  • Diversification: Treasury bills are a stable and low-risk investment and ideal as a tool to diversify risk caused by your stock or other aggressive investments. Including them in your portfolio reduces some value fluctuations, particularly in a tumultuous market. You can benefit from guaranteed returns provided by the t bills.
  • Low minimum investment amount: A minimum amount as low as S$1,000 for a treasury bill is suitable for more investors. Deemed as an investment tool for the wealthy, t bills are available to people with limited resources and novice investors to join bond markets. Besides, a highly liquid market, due to more investors’ participation, can reflect the real values of the assets.
  • Tax benefits: Singapore residents do not pay income tax on interest or return from investing in treasury bills. In other words, he may reclaim the full benefit from one dollar of return earned from investing in t bills. Besides, the government does not levy capital gains tax. Therefore, your returns from treasury bill investment are all tax-free.
  • Secure investments: Issued by the MAS and backed up by the Singapore government, t bills have the highest rating of AAA by Standard & Poor’s. The securities have recourse to assets from the government and are, therefore, default-free.
  • Convenient investing channels: The good news is: You can use funds in your CPF and SRS accounts to invest in treasury bills besides cash. 4 banks in Singapore offer a convenient venue for investors. All you do is open an account with one of DBS, POSB, OCBC, and UOB and begin to trade.


  • Low return: Though secure as a low-risk investment, treasury bills have the lowest return compared to other products of the same risk. A local bank deposit offering up to an interest rate of 4% is more attractive to investors than a return of 3.81% for a 6-month treasury bill. An investor may have difficulty in reselling a treasury bill in a rising interest rate environment.
  • Inflation: You may lose the value of your money if the returns from treasury bills cannot outpace inflation. While inflation remains high at 5.5% in Feb, you lose your real value of the investment by 1.69% = 3.81% – 5.5%. A loss of real value means you cannot buy the same good or service with a value of the dollar as the last year.
  • Early withdrawal: Like a fixed deposit, you cannot get back the return if you withdraw your investment before expiry. However, you will lose your return though no penalty is imposed.

Are T Bills a Good Investment?

You should be an ideal investor for treasury bills if:

  • You are near or at retirement: When you are planning for your retirement life, the best place to park your funds are government securities and bank deposits. They provide a liquid place available for withdrawals and emergency needs.
  • You are a risk-averse or conservative investor: You cannot tolerate a bumpy stock market. A style of constant price ups and downs may not let sleep well. Financial experts may think you are low in risk acceptance. You should switch to safe and stable investments instead. T bill is your type for its stable and predictable return.
  • You want to diversify investment risks: Including treasury bills in your aggressive portfolio can reduce your downside risks, according to investment experts. Unlike stocks, treasury bills, stable in price and returns, should be a part of your investment portfolio.

You should avoid investing in treasury bills if:

  • You opt for a long-term investment horizon: Treasury bills have a low return for the short run and are not appropriate for long-haul investors looking for moderate-to-high returns in the future.
  • You are an active and goal-oriented investor: Pro-active investors focusing on maximizing profits from investing should allocate most of their funds into the assets except for reserving some for diversification.
  • You want to beat inflation: Treasury bills are not an ideal tool for beating high inflation, especially in Singapore. Stocks and other investment portfolios are good alternatives for the job.

T-Bills vs. SGS Bonds vs. SSB

A summary of the comparison among the 3 Singapore government bonds and bills provides guidelines and helps you make the best investment decisions:

T-bills Singapore Savings Bond (SSB) SGS bonds*

Minimum investment amounts in S$

$1,000 and in multiples of $1,000 $500 and in multiples of $500 $1,000 and in multiples of $1,000

Maximum investment amounts in S$

None, but up to the allotment limits for auctions Up to $200,000 Up to the allotment limits for auctions

Maximum investment amounts in S$

None, but up to the allotment limits for auctions Up to $200,000 Up to the allotment limits for auctions


6 months, 1 year Up to 10 years 2, 5, 10, 15, 20, 30, & 50 years

Frequency of issue

Fortnightly or quarterly Monthly, for at least 5 years
  • Auction: monthly;
  • Syndication: announced by the MAS

Interest payment methods

Issued at a discount from the face or par value Fixed coupons, and in an annual step-up way

Fixed coupons

Interest payment frequency At maturity Every 6 months since the issue

Every 6 months since the issue

Transferability Yes No


Redemptions At maturity only(t-bills pay a face or par value)
  • Monthly redemption allowed with no penalty
  • The face value and accrued interest to be redeemed

At maturity only

Method of issue Uniform price auction: competitive and non-competitive bids Quantity ceiling format
  • Uniform price auction: non-competitive and competitive bids
  • Public offer: prices and yields stated on placement tranche, the MAS distributes based on the investor number maximization and application distribution 
Investing sources Cash, SRS, CPF SRS only

Auction only

Secondary market trade Through DBS, POSB, OCBC, and UOB branches N/A
  • Through DBS, POSB, OCBC, and UOB branches
  • Through the Singapore Stock Exchange(SGX)

* SGS bonds(the Singapore government securities sgs) are tradable debt securities paying fixed and semi-annual coupons.

How to Buy Treasury Bills in Singapore?


To buy treasury bills, you should have the following:

  • You are 18 or over, not bankrupt, and pass through reviews by your bank.
  • You have a bank account with one of the banks: DBS, POSB, OCBC, and UOB.
  • You have a central deposit account(CPD) to store and facilitate trades.
  • CPF accounts(optional): The CPF is a mandatory public retirement system set up by the government. A member can hold multi-purpose accounts within the system, such as a CPF investment account or an ordinary account, and use the funds to buy treasury bills.

Steps in buying T-bills

You have more options in buying T-bills, and knowing them assists you in choosing a suitable one for investing.

1. For primary sale

  • Cash: You need a bank account with one of four banks: DBS, POSB, OCBC, and UOB to receive capital with returns. After linking up a CDP account with your account, you can submit your application through ATMs or an Internet banking account. Banks charge a fee of S$2 per transaction, except for DBS, for free.
  • CPF – OA, SA, SRS: You can use the funds from save-for-retirement accounts with the 4 banks to buy treasury bills.

2. For trades on the secondary market

Besides the primary market, you can trade existing treasury bills on the secondary market. They are securities that have not yet expired and circulating in the market, available for trade. Like the primary market, you need an account with one of the 4 banks to begin trade.

man giving money bags to another man

Tips for Investing in T-Bills

Bidding T-bills

The information below may help increase your chance of success in a competitive bid:

  • Lower cut-off yield offer: You can increase your chances of winning a bid if you offer a lower cut-off yield than others. That means the MAS is more willing to accept your offer than others.
  • Same cut-off yield offer: If the offer is equivalent to one by the MAS, chances are you may not get a full bid – the MAS may reject part of your application.
  • Higher cut-off yield offer: If you offer a higher yield than accepted by the MAS, your chances of success are dim, and you may fail in the bid.

Applicants should research and sift through their offers before submitting their bids.

Selling T-bills

A treasury bill is redeemable for the principal and the fixed interest payment. An investor cannot get back the latter if he wants to surrender a bill. However, he can sell it for cash on the secondary market. The price depends on macro environments like interest rates and demand for the treasury bills he is holding. The secondary market offers a venue for an investor to cash out by possibly locking up a price favorable to a seller.

Other Things to Know

1. Are T-bills better than savings interest rates?

Treasury bills provide a better yield than most savings accounts in Singapore. Averaged savings rates without conditions range from 0% to 0.1875% p.a., while the latest treasury bills offer 3.81% p.a.

2. T-Bill Calendar 2023

The latest 6-month t-bill offering:

Details The latest 6-month T-Bills to be auctioned
Issue Code BS2310TV
ISIN Code SGXZ38306411
Tenor 6 months
Amount offered S$4.8 billion
Announcement date Apr 5, 2023
Auction date Apr 13, 2023
Issue date  Apr 18, 2023
Maturity Oct 17, 2023
Subscription requirements Up from S$1,000(in multiples of S$1000)


The latest 12-month t-bill(closed):

Details The latest 12-month T-Bills(closed)
Issue Code BY23100X
ISIN Code SGXZ77770303
Tenor 1 Year
Amount offered S$3.6 billion
Allotment Non-competitive: S$643.90 million
Announcement date Jan 17, 2023
Auction date Jan 26, 2023
Issue date  Jan 31, 2023
Maturity Jan 31, 2024
Subscription requirements Up from S$1,000(in multiples of S$1000)


Final Thoughts

Treasury bills are safe in principal with a guaranteed return at expiry. They have the backup of the Singapore government and are default-free. However, you should review your financial situation before jumping up the wagon. A thorough financial review with your financial advisor is necessary to ensure t-bills meet your needs.

Key takeaways

  • The current yields are 3.81% p.a. & 3.74% p.a. for 6-month and 1-year treasury bills(as of Apr 10, 2023.)
  • Treasury bills sell for a discount off their face value and pay for a full amount at bill expiry.
  • Investors can buy t-Bills in the primary and secondary markets.
  • Auctions determine cut-off yields of primary treasury bills.
  • The bidding procedure comprises competitive and non-competitive bids.

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