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!
| SGS bonds | T-bills | |
| 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 |
