Treasury Bills (T-bills)

Singapore Treasury Bills (T-bills) are fully backed by the Singapore government, and offer you a sound way to earn a regular interest payment.

T-bills have a short maturity period of 6 or 12 months.

• Interest Rate Risk: When interest rates go up, the price of the bond may come down. Hence, you may suffer capital losses if you were to sell the bond before its maturity date.
• Liquidity Risk: After you have been issued the Singapore T-bill, it may not be easy to buy or sell them in the secondary market before they mature.
• No certainty on yield: The cut-off yield for the T-bill is determined by demand and supply at the auction.
• Not SDIC Insured: T-bills are not insured under Singapore Deposit Insurance Corporation Limited (SDIC). However, they are guaranteed by the Singapore government.