Singapore Government Securities (SGS)

Singapore Government Securities (SGS)

Singapore Government Securities (SGS) are debt instruments issued by the Singapore Government — including SGS Bonds (long-term), Treasury Bills (T-bills, short-term), and Singapore Savings Bonds (SSB) — providing risk-free, government-backed income for Singapore investors.

This page is for informational purposes only and does not constitute financial advice. Always do your own research or consult a licensed financial adviser before investing.

Table of Contents

1. What Are Singapore Government Securities?
What Are Singapore Government Securities?
2. Types of SGS: T-Bills, SGS Bonds, SSBs
Types of SGS: T-Bills, SGS Bonds, SSBs
3. How to Buy SGS in Singapore
How to Buy SGS in Singapore
4. SGS vs Fixed Deposits vs SSBs
SGS vs Fixed Deposits vs SSBs
5. SGS and S-REIT Valuation
SGS and S-REIT Valuation

What Are Singapore Government Securities?

SGS are the umbrella term for all debt instruments issued by the Singapore Government through MAS (Monetary Authority of Singapore). They are considered risk-free instruments because they are backed by the full faith and credit of the Singapore Government — one of the few AAA-rated sovereigns globally.

SGS yield returns in the form of coupon payments (for bonds) or the discount to face value (for T-bills). As at Q2 2026, SGS yields have moderated significantly from 2023 peaks: the 6-month T-bill yield is approximately 1.46%, and the 10-year SGS bond yield is approximately 2.29%.

SGS are widely used by Singapore investors as the “risk-free rate” benchmark. The yield spread between S-REITs (~6.3%) and SGS 10Y (~2.29%) is approximately 4.1 percentage points — a key signal for REIT valuation. Use our T-Bill, SSB & FD Calculator to compare yields.


Types of SGS: T-Bills, SGS Bonds, SSBs

Treasury Bills (T-Bills): Short-term (6-month or 1-year), issued by weekly competitive auction. Purchased at a discount to S$1,000 face value and redeemed at par — the difference is your return. Minimum S$1,000. Can be bought via DBS/OCBC/UOB online banking, CPFIS-OA via CPF-SA and CPFIS investment accounts, and ATMs. As at Q2 2026 yield: ~1.46% (6-month), ~1.50% (1-year).

SGS Bonds: Fixed-rate bonds with maturities of 2, 5, 10, 15, 20, and 30 years. Pay semi-annual coupons. Traded on SGX secondary market. Minimum S$1,000. SGS bonds are the primary instrument for MAS to set the long-term risk-free rate. The 10Y SGS bond yield drives REIT valuation spreads.

Singapore Savings Bonds (SSBs): Retail instrument with step-up interest (rises each year you hold, up to 10 years). Non-tradeable — only redeemable back to government (no penalty, full month’s interest honoured). Max S$200,000/investor. SRS-compatible. As at April 2026 (SBAPR26): Year 1: 1.36%, 10-year avg: 1.99%.


How to Buy SGS in Singapore

Singapore investors have multiple channels to buy SGS:

  • T-Bills via DBS/OCBC/UOB: Apply online via internet banking, CDP account linked. Minimum S$1,000, increments of S$1,000. Applications close 1 business day before auction.
  • T-Bills via CPF: Invest CPF OA or SRS savings in T-bills via CPF online portal or approved bank/broker. CPF OA earns 2.5% vs T-bill 1.46% — OA may be better than T-bills currently.
  • SSBs via DBS/OCBC/UOB ATMs or iBanking: Apply monthly, results announced first business day of following month.
  • SGS Bonds on SGX: Buy/sell on secondary market via any SGX broker. Prices fluctuate with interest rates — bond prices fall when yields rise.

MAS SGS application schedule and yields: MAS T-Bills page.


SGS vs Fixed Deposits vs SSBs

Feature T-Bill (6M) SSB Fixed Deposit
Yield (Q2 2026) ~1.46% 1.36–1.99% ~1.00–1.50%
Capital Guarantee Yes (Govt) Yes (Govt) SDIC S$100k
Liquidity 6M lock (secondary mkt) Redeem any month Locked (early penalty)
CPF OA Eligible Yes No No
SRS Eligible Yes Yes Selected banks

Note: As at Q2 2026, CPF OA’s 2.5% (3.5% on first S$20k) significantly outperforms T-bills at ~1.46% — consider keeping CPF OA in CPF rather than investing in T-bills unless you need liquidity.


SGS and S-REIT Valuation

The SGS 10-year yield is the primary risk-free benchmark used to value S-REITs. Investors expect S-REITs to yield a spread above the 10Y SGS (currently ~2.29%) to compensate for illiquidity, execution, and management risk. Historically, a healthy spread is 3–4 percentage points.

Current spread (Q2 2026): S-REIT forward yield ~6.3% minus SGS 10Y ~2.29% = ~4.01% spread — above historical average of 3.5%, suggesting S-REITs are slightly cheap relative to bonds. This spread analysis supports a REIT-overweight view in the current environment. Track this spread live using our S-REIT Yield vs Bond Spread Calculator.

Frequently Asked Questions

What are Singapore Government Securities?
SGS are debt instruments issued by the Singapore Government, including SGS Bonds (2–30 year fixed-rate bonds), Treasury Bills (6M and 1Y short-term instruments), and Singapore Savings Bonds (SSBs, step-up retail bonds up to 10 years). All are backed by Singapore’s AAA-rated sovereign credit.
Are SGS bonds safe?
Yes — SGS bonds are risk-free in terms of credit risk because they are backed by the Singapore Government (AAA-rated). However, SGS bonds traded on the secondary market do carry interest rate risk: bond prices fall when yields rise.
What is the current T-bill yield in Singapore?
As at Q2 2026, the 6-month T-bill yield is approximately 1.46% and the 1-year T-bill yield is approximately 1.50%. These have declined from the 2023 peak of approximately 3.7–4.2% as SORA and global rates have fallen.
Can I buy T-bills with CPF funds?
Yes — T-bills can be purchased using CPF OA funds via CPFIS-OA through DBS, OCBC, or UOB. However, note that CPF OA currently earns 2.5% p.a. (3.5% on first S$20,000), which is higher than current T-bill yields of ~1.46%. Withdrawing from CPF to buy T-bills may reduce your effective returns.
What is the difference between SGS bonds and Singapore Savings Bonds?
SGS bonds are marketable securities traded on SGX with fixed coupon rates and various maturities (2–30 years). SSBs are non-tradeable retail bonds with step-up interest rates and flexible early redemption (no penalty). SSBs are capped at S$200,000 per investor and are suitable for retail savers who want flexibility.

© The Kopi Notes · Singapore Investing Glossary · All figures as at Q2 2026. Not financial advice.