Treasury bills and short-term government securities bonds – the next low-risk investment option?

THE PROS AND CONS

In addition, there are no penalties for liquidating one’s T-bill or SGS bond before maturity, said Mr Tan, although he cautioned that doing so via a sale in the secondary market might carry the risk of capital losses. Using the example of a six-month T-bill, he said: “The rates have been very attractive but after six months, what’s next?

“Additionally, one should also consider the liquidity of the instruments, meaning how quickly they can access their capital if needed and if there are any risks in doing so,” he added. The interest rate for the next tranche of Singapore Savings Bonds could also be headed higher, given how average SGS yields have inched back up this month after the decline in August, Mr Lee said. The interest rates of each Singapore Savings Bond issuance are based on the average SGS yields in the month before applications open.

“I know it may sound like general advice but you really need to consider all your assets and ask yourself what the money is for.”A minimum of S$1,000 is required to invest in both SGS bonds and T-bills, with investment amounts in multiples of S$1,000.

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Treasury bills and short-term government securities bonds – the next low-risk investment option?Beyond fixed deposits and Singapore Savings Bonds, experts say investors can also consider Treasury bills and short-term government securities bonds as low-risk investment options.
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