Investing & rates
What is Treasury Bill (T-bill)?
A short-term Singapore Government security with a 6-month or 1-year term, sold at auction at a discount: you pay less than the face value upfront and are paid the full face value at maturity, the difference being your return.
How T-bills work
Treasury bills are short-term Singapore Government securities with 6-month or 1-year terms, sold at auction (the 6-month bill roughly every two weeks). They’re issued at a discount: you pay less than the $100 face value upfront and receive the full face value at maturity, and that difference is your return. You can buy with cash, CPF (OA or SA) or SRS funds.
Competitive vs non-competitive bids
A non-competitive bid accepts whatever yield the auction settles at (the cut-off yield) and is allotted first, up to a cap — simplest for most individuals. A competitive bid lets you specify the minimum yield you’ll accept, but you risk only partial allotment or none if the cut-off comes in lower. Because the yield is set at each auction, your exact return isn’t known until the results are published.