Bond Yield Singapore — Complete Guide for Investors (2026)

Bond yield is the annual return an investor earns from holding a bond, expressed as a percentage of the bond’s current market price. In Singapore, bond yields from Singapore Government Securities (SGS), Treasury Bills (T-bills), and Singapore Savings Bonds (SSBs) are key benchmarks for all investment decisions — directly influencing S-REIT valuations, mortgage rates, and CPF interest rates. This article is for informational purposes only and does not constitute financial advice.

Types of Bond Yield

There are three main bond yield concepts every Singapore investor should understand:

• Coupon yield: Annual coupon payment ÷ face value. Fixed at issuance — e.g. a 3% coupon on a S$1,000 bond pays S$30/year.
• Current yield: Annual coupon ÷ current market price. Changes as the bond trades above or below face value.
• Yield to maturity (YTM): The total return if you hold the bond to maturity, accounting for coupon payments, capital gain/loss if purchased at discount/premium to face value, and time value of money. This is the most comprehensive yield measure and the one typically quoted for Singapore Government Securities.

For T-bills (zero coupon bonds), the yield is calculated as: YTM = (Face Value − Purchase Price) ÷ Purchase Price × (365 ÷ Days to Maturity). A 6-month T-bill purchased at S$99.27 (face value S$100) yields approximately 1.47% annualised.

Singapore Government Bond Yields (Q1 2026)

As at Q1 2026, Singapore Government Securities yields reflect a stabilised rate environment after the sharp 2022–2023 rate cycle:

• 6-month T-bill: ~1.46% p.a. (down from ~3.8% peak in 2023)
• 1-year SGS: ~1.65% p.a.
• 5-year SGS: ~2.10% p.a.
• 10-year SGS: ~2.29% p.a.
• SSB (May 2026): Year 1 rate ~2.14% p.a., 10-year average ~2.14% p.a.

Singapore’s bond yields are closely linked to US Treasury yields (given the SGD-USD peg management) but tend to run 150–250bps below comparable US rates due to Singapore’s AAA sovereign credit rating and MAS’s active monetary policy management. The MAS does not set interest rates directly but manages the SGD NEER (nominal effective exchange rate) — influencing domestic rates through the exchange rate channel. For detailed T-bill and SSB comparison, use our T-bill, SSB and fixed deposit comparison calculator.

Bond Yields and S-REIT Valuations

Singapore REIT valuations are extremely sensitive to government bond yields — specifically the yield spread between S-REIT distribution yields and the 10-year SGS yield. This is known as the REIT yield spread or “REIT premium”. As at Q1 2026:

• S-REIT sector forward yield: ~6.3%
• 10-year SGS yield: ~2.29%
• Yield spread: ~4.0 percentage points

Historically, this spread has averaged 3.0–3.5pp. At ~4.0pp, S-REITs are pricing in above-normal risk premium — potentially reflecting buying opportunity. Use our S-REIT yield vs bond spread calculator to model how changes in bond yields affect implied REIT fair value. When the US Federal Reserve cut rates in 2024, Singapore bond yields fell and REIT valuations improved — this relationship is the core macro trade for S-REIT investors.

Bond Yields and CPF Interest Rates

CPF interest rates are directly linked to Singapore Government Securities yields. The CPF Ordinary Account (OA) rate is set at 2.5% — the higher of (a) 2.5% and (b) the 12-month average yield of major Singapore banks’ savings rates, subject to the legislated floor of 2.5%. The CPF Special Account (SA), Medisave, and Retirement Account rates are set at the higher of (a) 4.0% or (b) the 12-month average yield of 10-year SGS + 1%. With 10-year SGS at ~2.29%, the formula gives 3.29% — below the 4% floor, so SA/Medisave/RA continues to earn 4%.

This means CPF SA’s 4% rate is structurally attractive compared to current Singapore government bond yields (~2.3% at 10-year tenor) — making CPFIS investing a higher-hurdle decision. See our CPF investment strategy guide for detailed analysis of when investing via CPFIS makes sense versus leaving money in SA.

T-bills vs SSBs vs SGS — Key Differences

For retail Singapore investors, three government bond products are most relevant:

• T-bills: 6-month or 1-year tenor, zero coupon (issued at discount), minimum S$1,000, auctioned bi-weekly, tradeable on SGX, can buy via CPF OA and SRS. Current yield ~1.46% (6m). See our Singapore T-bills guide.
• SSBs: Up to 10-year step-up coupon bonds, maximum S$200,000 individual holding, redeemable any month without penalty, not tradeable, SRS-compatible (not CPF OA eligible). Current year-1 rate ~2.14%. See our SSB guide.
• SGS bonds: 2–30 year tenors, fully tradeable on SGX, institutional + retail via primary auctions, minimum S$1,000. Best for investors wanting long-duration fixed income exposure.

How to Invest in Singapore Government Bonds

Singapore residents can access government securities through multiple channels: DBS/OCBC/UOB internet banking (T-bills and SSBs via ATM/internet banking, allotted via CDP), SGX (for secondary market T-bill and SGS trading), and SRS accounts (T-bills via SRS-linked bank). For corporate bonds, retail access is available through the SGX bond platform for retail bonds (S$1,000 minimum) or through fixed-income unit trusts and ETFs via platforms like FSMOne, Endowus, and Syfe.