Glossary
Singapore fixed-income terms in plain English. Sourced from MAS, CPF, and IRAS where applicable.
- Accrued interest
- Interest that has been earned but not yet paid out. For SSB, accrued interest is added to your redemption proceeds if you redeem between coupon payment dates.
- Auction date
- The day MAS collects bids and determines the cutoff yield for a T-bill or SGS bond. Bids typically close at 12 noon on this date. [source]
- Bid-to-cover ratio (B/C)
- Total amount bid in an auction divided by the amount issued. Above 2.0 generally indicates strong demand; below 1.5 indicates weaker demand.
- CDP (Central Depository)
- The Singapore securities depository. If you buy T-bills or SGS bonds with cash, they are held in your CDP account.
- Competitive bid
- An auction bid that specifies the exact yield the bidder wants. If the cutoff yield is lower (bid too high), the bid is rejected. If higher, the bidder gets the cutoff yield regardless of their bid. [source]
- Coupon
- The periodic interest payment made by a bond. SSBs pay coupons every 6 months; the coupon rate for each year is pre-set at issuance (step-up schedule).
- CPFIS-OA
- CPF Investment Scheme - Ordinary Account. Lets you invest CPF OA funds in approved instruments, including T-bills and SGS bonds. Not eligible for SSB. [source]
- CPFIS-SA
- CPF Investment Scheme - Special Account. For under-55 members, only SA savings above S$40,000 can be invested. The approved-instruments list includes T-bills, SGS bonds, fixed deposits, annuities, and selected unit trusts/ILPs/ETFs. The Special Account was closed for members aged 55+ in January 2025, so CPFIS-SA does not apply to them. [source]
- Cutoff yield
- The highest yield accepted at a uniform-price auction. Every successful bidder (competitive and non-competitive) receives this yield regardless of what they bid. [source]
- Cutoff amount (SSB)
- In an oversubscribed SSB issue, the cutoff amount is the allocation ceiling below which every applicant gets their full request. Above the cutoff, applicants receive the cutoff amount plus a random chance at the remainder.
- Dutch auction
- An alternative name for the uniform-price auction format MAS uses for T-bill, SGS bond, and MAS Bills auctions. Bidders submit competitive yields (or accept the cutoff via non-competitive bids); MAS fills from lowest yield up; everyone successful pays the same clearing (cutoff) yield. Distinct from a discriminatory or 'multiple-price' auction where each bidder pays their own bid. [source]
- Face value
- The par value of a bond, i.e. the amount repaid at maturity. S$1,000 denomination for T-bills; S$500 denomination for SSBs.
- Fixed deposit (FD)
- A bank deposit locked in for a fixed term at a fixed rate. Different from T-bills (tradable, government-backed) and SSBs (flexible redemption).
- Issue date
- The date a bond or bill is issued and begins accruing interest. For SSB, typically the first business day of a month. For T-bills, typically the first business day after the auction.
- MAS Bills
- Short-term debt instruments issued by the Monetary Authority of Singapore for monetary policy operations (managing banking-system liquidity). Distinct from Singapore Treasury bills (T-bills), which MAS issues on behalf of the Government of Singapore as part of public debt. Both instruments use the same uniform-price auction format with competitive and non-competitive bids; the difference is the issuer's purpose. T-bills are retail-accessible; MAS Bills are institutional instruments not offered through the retail purchase channels (DBS/POSB iBanking, OCBC, UOB, CPFIS). [source]
- Maturity
- The date a bond or bill's principal is repaid. T-bills: 6 months (182 days) or 1 year (364 days) from issue. SSB: up to 10 years, though you can redeem earlier at face value.
- Median yield
- The middle bid yield at an auction. If the median is much lower than the cutoff, a few aggressive bids pulled the clearing yield up. If close to the cutoff, the bid pool was tight.
- Multiple-price auction
- An auction format where each successful competitive bidder pays the yield they bid (also called discriminatory or American-style). Contrast with the uniform-price auction MAS uses, where all successful bidders pay the same cutoff yield. MAS does not use multiple-price auctions for T-bills, SGS bonds, or MAS Bills.
- Non-competitive bid
- An auction bid that accepts the cutoff yield without specifying a target. For T-bills, non-competitive allocation is capped at 40% of issue size and S$1M per individual per auction. [source]
- Principal
- The original amount invested. For T-bills, you pay less than principal (discount) and receive principal at maturity. For SSBs, you pay principal and receive principal back plus interest.
- QDS (Qualifying Debt Securities)
- The IRAS scheme under which interest on SGS, T-bills, and SSBs is tax-exempt for Singapore-resident individuals. Exception: interest from a partnership or trade/business is not exempt. [source]
- Random allotment
- The SSB method for handling oversubscribed issues — allocations beyond the cutoff amount are determined by lottery.
- SGS (Singapore Government Securities)
- The umbrella term for Singapore government debt instruments: T-bills (short-term) and SGS bonds (long-term).
- SGS bond
- A longer-dated Singapore government bond (2, 5, 10, 15, 20, 30 years). Distinct from T-bills (6-month and 1-year). Pays a fixed coupon, tradable in secondary market. [source]
- SRS (Supplementary Retirement Scheme)
- A voluntary tax-advantaged retirement savings scheme. SRS funds can be used to purchase SSBs and T-bills, among other approved instruments. [source]
- SSB (Singapore Savings Bond)
- A retail-only Singapore government bond with a step-up coupon schedule over 10 years. Redeemable any month at face value. Cap: S$200,000 per person across all SSB holdings. Purchasable with cash or SRS (not CPF). [source]
- Step-up coupon
- SSB's signature feature: the coupon rate increases each year. Year 1 is lowest; year 10 is highest. Each year's rate is pre-set at issuance.
- T-bill (Treasury bill)
- A short-term Singapore government debt instrument. Two tenors currently: 6-month (182 days) and 1-year (364 days). Zero-coupon — issued at a discount, redeemed at face value at maturity. T-bills can also be sold on the secondary market before maturity, where price moves with interest rates. [source]
- Tenor
- The length of time until a bond or bill matures. Common SGS tenors: 6 months, 1 year, 2 years, 5 years, 10 years, 15 years, 20 years, 30 years.
- Uniform-price auction
- The auction format MAS uses for T-bills, SGS bonds, and MAS Bills. MAS auction notices label the method of sale as 'uniform price auction — competitive bids only.' Bidders submit competitive yields (the exact yield they want) or non-competitive bids (accept whatever the cutoff is). MAS fills from the lowest yield upward until the issue size is covered. The last yield accepted is the cutoff, and every successful bidder — competitive or not — pays that same cutoff yield. Also known as a Dutch auction. Contrast with a multiple-price (discriminatory, American-style) auction where each bidder pays their own bid. [source]
- Yield
- The annualized return on a bond or bill. For T-bills (zero-coupon), yield is the discount-to-par expressed as an annual rate. For SSB (coupon-bearing), yield for a single year equals that year's coupon rate.
- Year-1 rate (SSB)
- The first-year coupon rate on an SSB. If you redeem after holding for 12 months, this is approximately the annual return you receive.
Spotted an error or missing term? Let us know. All definitions are informational, not advice.