CMTBs: Information for Institutions

Cash Management Treasury Bills (CMTBs) are short-term, tradable government debt securities that are issued at a discount to their face value. They serve as an instrument within the Government’s cash management toolkit, enhancing the Government’s ability to manage any short-term cashflow mismatches. CMTBs are issued on an ad-hoc basis, and can be tailored to any tenor under 6 months.

Product Information

Legislation Local Treasury Bills Act
Objective To raise cash, should any short-term cashflow mismatches occur.
Issuer Government of Singapore
Sovereign Credit Rating AAA
Tenor Less than 6 months (<182 days)
Frequency of issuance Ad-hoc
Issuance timeline Announcement on T-1
Auction on T
Settlement on T+1
Method of sale Uniform price auction – competitive bids only
Coupon Payment No coupon payment; instead they are issued at a discount to the face (par) value. The interest is paid at maturity, and is the difference between the purchase price and the face value.
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.

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More Information about CMTBs

Find out more about the SGS market, the auction process and how to buy and sell CMTBs.

Understanding SGS

Get an overview of Singapore's economy, credit rating and bond market. View the market features, legislation and guidelines, and tax treatment.

Buying and Selling CMTBs

Find out how to buy CMTBs at auctions, or buy and sell them on the secondary market.

Understanding Auctions

View the issuance calendar for planned auctions and find out how auctions work.