Surprising fact: more than half of short-term savers choose government-backed paper to park cash during uncertain markets.
As investors, you often want a low‑risk investment that keeps capital safe yet earns more than deposits. T‑bills from the singapore government are issued regularly in six‑month and one‑year tenors. You buy at a discount and receive full face value at maturity, keeping returns simple and transparent.
We’ll explain how these instruments sit inside fixed income and savings plans, who typically uses them, and why short tenors help with liquidity. You’ll also see how current interest and rates trends affect practical choices like rolling over or redeploying cash.
Want a tailored plan? Whatsapp us for a discovery session to understand how T‑Bills can complement your liquidity needs and near‑term financial goals. For details on buying and issuance, see our guide to invest singapore t-bills.
Key Takeaways
- T‑Bills are a government-backed, low‑risk investment for parking cash.
- You buy at a discount and get full face value at maturity—returns are clear.
- Six‑month and one‑year tenors offer flexibility for short-term plans.
- They fit well within fixed income and cash buffers for stability.
- Regular issuance lets you plan around cash flow without long lock-ins.
- Contact us via WhatsApp to align T‑Bills with your financial goals.
What Are Singapore T‑Bills and Why They Matter Now
For near-term cash needs, short-dated government securities offer clarity and a predictable payout.
singapore government securities are short-term, fully backed notes issued by MAS. They sit in the fixed income bucket and carry low risk thanks to sovereign backing.
Standard tenors are the 6-month t-bills and a one-year option. You buy at a discount and receive par at maturity, which makes the math straightforward even if you’re new to bonds.
Why act now? Short tenors let you adjust faster when interest rates move. That helps if you expect cash needs in the next 6–12 months.
- Simple use cases: renovation budgets, tax payments, or planned property costs.
- Transparent payoff: discount-to-par means you know what you’ll receive at maturity.
- Market-driven: t-bill yields change with demand and broader yield shifts.
Whatsapp us for a discovery session if you prefer a simple, low‑risk place to hold funds you need within the next 6‑12 months.
Singapore treasury bills interest rate today: where yields stand at present
Short-term auction outcomes give a clear snapshot of where liquid cash can earn today.
Latest auction snapshot
The most recent 6‑month cut-off yield printed at 2.05% on 5 Jun 2025 (code BS25111T), with a bid-to-cover near 2.35. This source comes from official MAS announcements and shows a softer backdrop vs. last year.
One‑year and recent trend
The 1‑year auction returned 2.95% on 23 jan 2025, offering a reference point if you consider a slightly longer tenor for higher yield. Prior 6‑month tranches slipped from 3.04% on 28 Jan 2025 down through multiple prints to the current cut-off.
“From 2024 highs near 3.7–3.8%, yields have retreated below 3% as global policy expectations and cooler inflation reshaped demand.”
| Auction date | Tenor | Cut-off / yield |
|---|---|---|
| 5 Jun 2025 | 6‑month | 2.05% |
| 23 Jan 2025 | 1‑year | 2.95% |
| 4 Jul 2024 | 6‑month | 3.70% |
Practical note: strong demand at auctions can compress cut-off yield outcomes, which we’ve seen across early‑2025 prints. If you hold short-term cash, weigh whether a shorter auction meets your liquidity. If you can lock slightly longer, the 1‑year may suit.
For a clear plan that fits your timeline, explore our singapore t-bill guide or Whatsapp us for a discovery session to translate the latest t-bill outcomes into actionable steps.
Verification tip: always match codes, dates and figures against the monetary authority singapore releases when checking any external table or t-bill auction bulletin.
How T‑Bill rates are determined at auction
Auction mechanics decide the payout you see at maturity, so knowing them helps you bid with confidence.
Singapore uses a uniform-price system for each t-bill auction. The cut-off yield is the highest successful competitive bid. All successful allocations get that cut-off yield, even if they bid lower.
Competitive vs. non-competitive bids
Competitive bidders name the yield they want. If the bid is below the cut-off, it is filled at the cut-off yield. Bids at the cut-off may be pro‑rated. Bids above it receive no allocation.
Non‑competitive bids offer simplicity: you accept the cut-off yield and get an allocation subject to pro‑ration if demand exceeds the issue size.
Demand and outcomes
High demand pushes prices up and causes yield to fall. Lower interest from the market lets yields rise. Read monetary authority announcements and authority singapore notices for issue codes and settlement details.
| Feature | What it means | Why it matters |
|---|---|---|
| Uniform pricing | All winners get same cut-off yield | Fair, simple pricing for investors |
| Competitive bids | Specify desired yield | Better yields but allocation risk |
| Non-competitive bids | Accept cut-off yield | Ease of access; may be pro‑rated |
We can review your approach if you want help choosing between competitive and non‑competitive bidding. Whatsapp us for a discovery session before the window closes.
Historical perspective: cycles, yield curves, and competitiveness
Past cycles guide present choices. From deep easing in 2019–2020 to sharp tightening in 2022–2023, short-term government paper swung widely. Six‑month t-bills dropped under 1% during the Fed’s cut cycle and briefly hit lows near 0.20% in the COVID shock. Then yields surged: late‑2022 auctions topped 4%, illustrating how quickly conditions can shift.
Why yield curves matter: an inverted curve can make very short maturities relatively attractive. When longer-term outlooks weaken, shorter tenors may offer similar cash returns with less duration risk. That edge often fades as policy pivots and curves normalize.
We watch bid‑to‑cover as a simple thermometer for demand at auctions. High ratios usually compress the cut-off yield. Lower demand gives issuers room to let yields drift higher. Jan 2025 showed calmer prints versus the 2022 retail peak, underscoring how auction dynamics change within a year.
- Map the cycle: sub‑1% to 4%+ demonstrates the range you can expect.
- Compare tenors: 6‑month t-bills vs. 1‑year t-bills — laddering smooths reinvestment timing.
- Read demand cues: bid‑to‑cover guides likely cut-off yield outcomes at auctions.
Practical tip: anchor your choice to your time horizon first, then layer historical context so you avoid chasing spikes. Whatsapp us for a discovery session if you want help interpreting historical cycles to set realistic expectations.
T‑Bills vs. alternatives: fixed deposits, SSBs, and high‑yield accounts
Certain cash products look similar at first glance, but the fine print can change outcomes for your savings.
Fixed deposits and insurance
Fixed deposits often pay predictable returns, and deposits are insured up to S$75,000 per depositor per member bank. If you hold larger sums, you may need to split across banks to keep full coverage.
Singapore Savings Bonds (SSBs)
SSBs let you redeem monthly, yet the step‑up structure rewards longer holding. That makes them useful when you want safety plus rising returns over time.
High‑yield accounts
High‑yield accounts can advertise strong headline numbers. Many require salary crediting, minimum card spend, or other conditions that reduce practical access.
When T‑Bills may be preferable
Singapore t-bill outcomes this March–June printed roughly 2.05–2.75% while selected six‑month fixed deposits ranged about 2.00–2.90% (bank‑dependent). For a transparent, government‑backed, low‑friction option, treasury bills remain a solid low‑risk investment when you value clear pricing and regular issuance.
- Weigh insured caps, lock‑ins and true interest take‑home.
- Laddering across products can preserve liquidity and smooth reinvestment.
Want a side‑by‑side review? Whatsapp us for a discovery session to compare your current bank and SSB options with T‑Bills for near‑term needs.
How to invest in Singapore T‑Bills step by step
Start by picking your channel—internet banking (cash), your broker/CDP, or SRS—and check the upcoming t‑bill auction window. We recommend confirming account details and ensuring sufficient deposits on settlement day so nothing blocks allocation.
Application channels and minimums
You can apply via your bank app’s investments menu, through a broker/CDP, or using SRS. The minimum is S$1,000, sold in S$1,000 multiples. T‑Bills are bought at a discount and redeemed at par on maturity.
Yield math and key dates
Use the discount-to-par formula to estimate yield: Yield = (Face Value – Purchase Price) / Face Value × (365 / Days to Maturity) × 100. Please verify calculations against the monetary authority singapore announcement before you bid.
| Milestone | What to expect | Example |
|---|---|---|
| Announcement | Code, size, dates | Check MAS notice |
| Auction | Pricing day (t‑bill auction) | Jan 2025 / Feb 2025 prints |
| Issue/Settlement | Funds debited | Settlement date listed |
| Maturity | Redeemed at par | Principal returned on maturity |
- Choose bid type: competitive or non‑competitive.
- Match your term to cash needs: 6‑month 1‑year options exist.
- Compare recent t-bill yields like feb 2025 and jan 2025 to set expectations.
Need help? Whatsapp us for a discovery session and we’ll walk you through your first application live via your bank app.
Positioning T‑Bills in your portfolio amid falling yields
Lower yields change the calculus: preservation and timing matter more than headline returns. Use short-dated paper as a clear cash parking tool when you expect spending in the next 6–12 months.
Income parking vs. long‑term growth
Think of these notes as a liquid sleeve inside a broader plan. Hold equities and multi‑year bonds for growth, and use short tenors for near-term needs.
Global drivers and what to watch
The Fed is signalling cuts and MAS expects core inflation to ease into 2025. That backdrop often pushes t-bill yields lower after auctions. Note the 6‑month print on 5 Jun 2025 at 2.05% as a recent reference point.
Risks and trade‑offs
- Reinvestment risk: maturing tranches may roll into lower interest rates.
- Liquidity: secondary market is thin — plan to hold to maturity.
- Opportunity cost: cash parked here may miss higher returns from risk assets.
Stress-test scenarios: if yield falls another 50–100 bps, consider extending tenor or adding a ladder to smooth outcomes. A simple ladder preserves optionality and aligns cash with dates of need.
Want a tailored plan? Whatsapp us for a discovery session to align singapore t-bills with your financial goals, cash buffer, and fixed income mix.
Conclusion
Deciding which tenor to buy comes down to exact dates when you need the money back.
treasury bills remain a simple, government-backed way to earn interest while you preserve capital for near-term plans.
Six‑month prints currently sit at 2.05% (5 Jun 2025) and the 1-year t-bill printed 2.95% in Jan 2025. Rates have eased from 2024 highs, so match each maturity to your cashflow.
Please verify figures against the MAS source before bidding, and please verify auction dates and settlement details each time.
If you’d like help choosing tenor, bidding method or a rollover plan, Whatsapp us for a discovery session to finalise a calm, tailored approach.
FAQ
What are T‑bills and why should I consider them now?
T‑bills are short-term, government-backed securities that mature in 6 months or 1 year. They offer a low-risk place to park cash while earning a predictable yield, useful when you want capital preservation and liquidity rather than market exposure.
How are the cut-off yields set at auctions?
Auctions use a uniform-price method. Bids are ranked by yield; the highest accepted yield becomes the cut-off. All successful bidders receive that yield. Strong demand typically pushes the cut-off lower; weak demand pushes it higher.
What were the latest headline yields for 6‑month and 1‑year issues?
The most recent 6‑month cut-off yield reported was 2.05% (auctioned 5 Jun 2025). A recent 1‑year auction showed about 2.95% in Jan 2025, reflecting a pullback from 2024 highs.
How do competitive and non‑competitive bids differ?
Competitive bidders specify a yield and risk partial allocation. Non‑competitive bidders accept the cut-off yield and receive full allocation up to limits. Non‑competitive is simpler for most individual investors.
How do I buy T‑bills?
You can apply through internet banking (cash), a broker/CDP account, or SRS. Minimum subscription is S
FAQ
What are T‑bills and why should I consider them now?
T‑bills are short-term, government-backed securities that mature in 6 months or 1 year. They offer a low-risk place to park cash while earning a predictable yield, useful when you want capital preservation and liquidity rather than market exposure.
How are the cut-off yields set at auctions?
Auctions use a uniform-price method. Bids are ranked by yield; the highest accepted yield becomes the cut-off. All successful bidders receive that yield. Strong demand typically pushes the cut-off lower; weak demand pushes it higher.
What were the latest headline yields for 6‑month and 1‑year issues?
The most recent 6‑month cut-off yield reported was 2.05% (auctioned 5 Jun 2025). A recent 1‑year auction showed about 2.95% in Jan 2025, reflecting a pullback from 2024 highs.
How do competitive and non‑competitive bids differ?
Competitive bidders specify a yield and risk partial allocation. Non‑competitive bidders accept the cut-off yield and receive full allocation up to limits. Non‑competitive is simpler for most individual investors.
How do I buy T‑bills?
You can apply through internet banking (cash), a broker/CDP account, or SRS. Minimum subscription is S$1,000. T‑bills are sold at a discount and redeemed at par on maturity.
How is the yield calculated on a discount T‑bill?
Yield derives from the discount between purchase price and par value over the holding period. Use the discount‑to‑par formula or the conventions published by the Monetary Authority for exact calculations.
Are T‑bills safer than fixed deposits or high‑yield accounts?
T‑bills are sovereign obligations and among the lowest credit risk instruments. Fixed deposits may be insured up to S$75,000 per bank, while high‑yield accounts often have conditions. Choose based on liquidity needs and insurer protection.
What drove yields higher in 2022–2024 and why did they fall afterward?
Global rate hikes, inflation, and monetary policy shifts pushed yields up through 2022–2024. Subsequent easing of inflation expectations and changes in central bank guidance helped yields decline into 2025.
What are the main risks when parking cash in T‑bills?
Key risks include reinvestment risk (future yields may be lower), opportunity cost versus higher-return assets, and timing risk around auctions. Credit risk is minimal for sovereign paper.
How do I decide between 6‑month and 1‑year maturities?
Choose 6‑month for greater flexibility and quicker reinvestment; choose 1‑year if you want a higher locked‑in yield and can wait. Consider your cash flow needs and outlook for policy rates.
How often are auctions held and what are the key dates?
Auctions occur regularly as scheduled by the issuer. Important dates include announcement, auction date, issue date, and maturity. Check the Monetary Authority’s calendar for precise timings.
Can I use T‑bills as part of a broader portfolio strategy?
Yes. They serve as cash management tools, a safe place between allocations, or as short‑term ballast against equity volatility. We can help align them with your financial goals.
What is a bid‑to‑cover ratio and why does it matter?
The bid‑to‑cover ratio measures demand by comparing total bids to amounts offered. Higher ratios signal strong demand and typically lead to tighter (lower) cut‑off yields, indicating market confidence.
Where can I verify auction results and official yield figures?
Official auction outcomes and yield announcements are published by the Monetary Authority. Use their website and the auction notices for authoritative information.
If yields fall, should I lock in a longer term or stay short?
That depends on your view of future policy and cash needs. If you expect further falls, locking in a 1‑year issue may be sensible. If you value flexibility, shorter maturities allow quicker repositioning.
,000. T‑bills are sold at a discount and redeemed at par on maturity.
How is the yield calculated on a discount T‑bill?
Yield derives from the discount between purchase price and par value over the holding period. Use the discount‑to‑par formula or the conventions published by the Monetary Authority for exact calculations.
Are T‑bills safer than fixed deposits or high‑yield accounts?
T‑bills are sovereign obligations and among the lowest credit risk instruments. Fixed deposits may be insured up to S,000 per bank, while high‑yield accounts often have conditions. Choose based on liquidity needs and insurer protection.
What drove yields higher in 2022–2024 and why did they fall afterward?
Global rate hikes, inflation, and monetary policy shifts pushed yields up through 2022–2024. Subsequent easing of inflation expectations and changes in central bank guidance helped yields decline into 2025.
What are the main risks when parking cash in T‑bills?
Key risks include reinvestment risk (future yields may be lower), opportunity cost versus higher-return assets, and timing risk around auctions. Credit risk is minimal for sovereign paper.
How do I decide between 6‑month and 1‑year maturities?
Choose 6‑month for greater flexibility and quicker reinvestment; choose 1‑year if you want a higher locked‑in yield and can wait. Consider your cash flow needs and outlook for policy rates.
How often are auctions held and what are the key dates?
Auctions occur regularly as scheduled by the issuer. Important dates include announcement, auction date, issue date, and maturity. Check the Monetary Authority’s calendar for precise timings.
Can I use T‑bills as part of a broader portfolio strategy?
Yes. They serve as cash management tools, a safe place between allocations, or as short‑term ballast against equity volatility. We can help align them with your financial goals.
What is a bid‑to‑cover ratio and why does it matter?
The bid‑to‑cover ratio measures demand by comparing total bids to amounts offered. Higher ratios signal strong demand and typically lead to tighter (lower) cut‑off yields, indicating market confidence.
Where can I verify auction results and official yield figures?
Official auction outcomes and yield announcements are published by the Monetary Authority. Use their website and the auction notices for authoritative information.
If yields fall, should I lock in a longer term or stay short?
That depends on your view of future policy and cash needs. If you expect further falls, locking in a 1‑year issue may be sensible. If you value flexibility, shorter maturities allow quicker repositioning.
