T-bills: Information for Institutions

Treasury bills (T-bills) are short-term, tradable Singapore Government Securities that are issued at a discount to their face value. The Government issues 6-month and 1-year T-bills.

Overview

Product Information

Key Details

SGS T-bills are fully backed by the Singapore Government.

Issuer
Government of Singapore
Sovereign credit rating
AAA
Tenor
6 months or 1 year
Currency
SGD
Interest rate
No coupon. Issued at a discount to the face value
Interest payments
Upon maturity, investors receive the face value

Compare with SGS bonds and MAS bills 

Buying and Selling

T-bills are issued through auctions. Auctions typically take place 3 business days before issuance and are announced on the SGS website 5 business days before the auction.

You can submit your application through any of the approved primary dealers.

Frequency of issuance
Quarterly, according to the issuance calendar.
Method of sale
Uniform price auction - investors can submit competitive or non-competitive bids.
Bid format
In yield terms, up to 2 decimal places.
Investment amount
S$1,000, and in multiples of S$1,000.
There is no maximum amount an institution can hold, but there are limits for each auction.

Typical issue size
S$2 billion to S$4 billion.
Who can buy
All institutions and individuals, including non-residents.
Settlement

  • T+3 for auctions; T+1 in the secondary market on a delivery-versus-payment (DVP) basis.
  • Settled via the MAS Electronic Payment System (MEPS+).
Custody
By book entry in the investor's custody account.

 

  • Institutions without a MEPS+ account need to open an SGS account with any primary dealer.
  • Institutions can also use their Clearstream and Euroclear accounts to custodise SGS.
Secondary market trading
  • Primary dealers: Bloomberg E-bond platform, brokers.
  • Institutional investors: over-the-counter and through primary dealers' dealer-to-client platforms.

Trading hours are from 9am to 11:30am and 2pm to 4:30pm.

Tax

There is no capital gains tax in Singapore.

For residential financial institutions (excluding Financial Sector Incentive - Standard Tier companies) and corporations, interest income is taxed at a concessionary rate of 10% for SGS issued up to 31 Dec 2023.

More on tax 

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Enquiries

If you have any questions or enquiries about this product, please contact us.