T-bills Singapore: What is it?

(From OCBC app on 2024-05-04)

SGS T-Bills are short term securities which mature in one year or less from their issue date.

T-Bills do not pay interest, but the face value of the bond will be paid on maturity. They are sold at a price less than their face (par) value. The interest rate is determined by the difference between its purchase price and face value.

You may put in a competitive bid or a non- competitive bid. In a competitive bid, you specify your desired yield. In a non- competitive bid, you will be allotted the T- bills at a uniform yield. Non-competitive bids have a priority over competitive bids during the auction.

SGD T-bill can only be traded at any of our branches (OCBC, DBS, UOB). You can choose to sell them at any time before maturity.

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