The latest 1-Year Singapore Treasury Bills, identified as BY25100H, are now offering an annual yield of 2.95%. When you compare interest rates, these Treasury Bills are more attractive than the current Singapore Savings Bond (SBFEB25) and a majority of fixed deposits. Thanks to their low-risk profile, Singapore Treasury Bills are increasingly becoming a preferred option for investors looking to diversify and grow their funds.
This particular Singapore Treasury Bill (BY25100H) marks the first 12-month issuance in 2025. Observing trends from the accompanying chart, it’s evident that the interest rates for SGS T Bills have been on a downward trajectory since the year’s initial offering.
So, what makes Singapore Treasury Bills capable of providing such competitive interest rates? There are a few reasons behind this. Firstly, Singapore’s reputation for having a strong and stable economy plays a significant role. This economic robustness ensures that government bonds are seen as a secure investment, encouraging investors to accept yields that reflect this stability. Consequently, Singapore has the leverage to offer higher interest rates on these bonds.