T-Bill (Singapore Treasury Bill)

Singapore Treasury Bill guide — how auctions work, current yields, CPF OA & SRS eligibility, and 2026 rate data.

A Singapore Treasury Bill (T-bill) is a short-term government debt instrument issued by the Monetary Authority of Singapore (MAS) on behalf of the Singapore Government, sold at a discount and redeemed at face value on maturity. T-bills are available in 6-month and 1-year tenors, offering near-risk-free returns backed by the AAA-rated Singapore Government.

Not financial advice. All figures are for educational reference only. Data as at Q1 2026 unless noted.

Table of Contents

What Is a Singapore T-Bill?

Singapore Treasury Bills, commonly called T-bills, are short-term government securities issued by the Monetary Authority of Singapore (MAS) on behalf of the Singapore Government. They are zero-coupon instruments — meaning they pay no periodic interest — but are sold at a discount to their S$1,000 face value and redeemed at full face value on maturity. The difference between the purchase price and the face value represents your return.

T-bills are offered in two tenors: 6-month (26-week) and 1-year (52-week). The 6-month T-bill is auctioned on a roughly bi-weekly basis, while the 1-year T-bill is auctioned approximately monthly. Minimum application size is S$1,000, and applications must be made in multiples of S$1,000.

Unlike savings accounts or fixed deposits, T-bill yields are determined by a competitive auction process. Investors submit bids stating the yield they are willing to accept, and MAS sets a “cut-off yield” — the highest yield at which the full issuance can be absorbed. All successful bidders receive the cut-off yield regardless of what they bid.

T-bills are considered one of the safest investments available to Singapore retail investors. The Singapore Government carries a AAA credit rating from S&P, Moody’s, and Fitch, meaning the probability of default is essentially zero. They are also backed by the full faith and credit of the Singapore Government. For conservative investors seeking to park cash with certainty of return, T-bills are a compelling alternative to bank fixed deposits.

How T-Bill Auctions Work

Singapore T-bill auctions follow a uniform-price auction format. MAS announces an upcoming auction with the issue size, tenor, and application deadline. Retail investors can participate through two routes: competitive bids (where you specify the cut-off yield you want) or non-competitive bids (where you accept whatever cut-off yield is set, guaranteed allocation up to S$1 million per auction).

Most retail investors use the non-competitive bid route to guarantee allocation. Applications are made via DBS/POSB, OCBC, or UOB internet banking or ATMs using your CDP (Central Depository) account. You will need a CDP account linked to a bank account to apply.

How the yield is calculated: T-bills are quoted on a discount basis. If a 6-month T-bill is issued with a cut-off yield of 3.00% p.a., and face value is S$1,000, the purchase price is approximately S$985.22. Your return is S$14.78 on a S$985.22 investment over 6 months, which annualises to roughly 3.00%.

Formula: Price = Face Value ÷ (1 + Yield × Days/365)

Settlement is typically two business days after the auction date. On maturity, the full face value is automatically credited back to your linked bank account via CDP. There is no secondary market redemption prior to maturity for retail investors through standard bank channels, so T-bills are best treated as held-to-maturity instruments.

T-bills are also eligible for CPF Ordinary Account (OA) funds and Supplementary Retirement Scheme (SRS) funds, which can meaningfully boost returns for investors whose CPF OA earns only 2.5% p.a. — see below.

T-Bills in Singapore 2026

T-bill yields in Singapore are closely correlated with U.S. Federal Reserve policy rates and MAS monetary policy. After peaking at around 3.80%–4.00% in 2023, 6-month T-bill cut-off yields trended lower through 2024–2025 as global interest rate cycles shifted. As at Q1 2026, 6-month T-bill yields are hovering in the 2.8%–3.2% range, still comfortably above CPF OA rates (2.5%) and competitive with bank fixed deposits.

T-bills eligible for CPF OA: Investors can use CPF OA savings to subscribe for 6-month and 1-year T-bills through the CPF Investment Scheme (CPFIS). This is a compelling option if T-bill yields exceed the guaranteed 2.5% CPF OA rate, though investors should account for the S$2.50 per transaction fee charged by CPFIS-approved agents. You can learn more in our CPF Investment Strategy guide.

T-bills eligible for SRS: SRS account holders can invest SRS funds in T-bills through participating SRS operators (DBS, OCBC, UOB). SRS contributions are eligible for income tax relief of up to S$15,300 (for Singapore Citizens and PRs), making SRS T-bill investments doubly tax-efficient.

Interest income from Singapore Government T-bills is exempt from Singapore income tax for individual investors — an advantage over some bank deposits. Auction schedules are published on the MAS website, and TKN tracks upcoming auctions regularly. For broader retirement planning, see our Singapore Retirement Calculator.

Real-World Examples

At the February 2026 6-month T-bill auction, MAS issued S$6.9 billion of 6-month T-bills at a cut-off yield of 2.98% p.a. Total applications received were S$13.2 billion, implying an oversubscription of approximately 1.9x. Non-competitive applications were allocated in full up to S$1 million per investor.

For an investor putting in S$50,000 via a non-competitive bid: purchase price ≈ S$50,000 ÷ (1 + 0.0298 × 182/365) ≈ S$49,268. Return at maturity = S$50,000 – S$49,268 = S$732 over 6 months. Annualised that is approximately S$1,464/year on S$50,000 — better than leaving it in a standard savings account or CPF OA.

For the 1-year T-bill auction in January 2026, the cut-off yield was 3.05% p.a. on S$4 billion issued. A S$100,000 investment would generate approximately S$3,050 at maturity, tax-free for Singapore residents.

Investors using CPF OA for T-bills effectively earn the spread between the T-bill yield and the 2.5% CPF OA floor — on S$50,000, that extra ~0.5% p.a. translates to roughly S$250 per year in additional return compared to leaving funds in CPF OA.

Why It Matters for Investors

T-bills are one of the most versatile tools in a Singapore investor’s toolkit. For capital preservation, they offer near-risk-free returns with a short investment horizon — ideal for emergency fund parking, near-term liquidity needs, or portfolio “warchest” management while you wait for attractive investment opportunities.

Compared to Singapore Savings Bonds (SSBs), T-bills offer potentially higher yields in a high-interest-rate environment and faster access (SSBs have a 1-month redemption window). But SSBs offer redemption flexibility whereas T-bills are locked to maturity for retail investors.

For S-REIT investors, T-bills provide a useful benchmark: when T-bill yields approach 4%+, the yield premium offered by S-REITs narrows, which historically weighs on REIT unit prices. Tracking the dividend yield spread between REITs and risk-free T-bills is a key valuation lens. Explore the Best S-REITs 2026 to compare current REIT yields vs T-bill rates.

For CPF optimisers, regularly investing CPF OA excess (beyond the minimum threshold) into T-bills when yields exceed 2.5% is a straightforward way to enhance risk-free returns without taking on equity risk. Use our CPF OA/SA Calculator to model scenarios.

Frequently Asked Questions

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