Introduction and features of T-bills
What is the T-bill?
- T-bills are short-term, tradable debt issued by the Singapore government.
- T-bills have a maturities of 1 year or less.
What is the difference between T-bill to SGS Bonds?
- SGS bonds have a maturity of 2 to 30 years, while T-bills have a shorter maturity of 6 or 12 months.
- SGS bonds pay interest every 6 months. T-bills do not have coupon payments; instead they are issued at a discount to the face value of the bond.
- You can read more about the difference here!
|Available tenor||2, 5, 10, 15, 20, 30 or 50 years||6 months or 1 year|
|Type of interest rate payment||Fixed coupon||No coupon; issued and traded at a discount to the face (par) value|
|How often interest is paid||Every 6 months, starting from the month of issue||At maturity|
|Secondary market trading||At DBS, OCBC or UOB main branches; on SGX through brokers||At DBS, OCBC or UOB main branches|