Treasury Bills


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Falcon

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Jan 18, 2002
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#1
Anyone familiar with this? Just read up a little on this. Seems like similar to fixed deposit and interest rate is comparable. Any comments?
 

mojopy

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Jul 18, 2006
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#2
depending on how long you invest
there are different period ranging from 3mths to years.
each type of period will have a interest rate (annual) and a yield to maturity rate (annual)

basically, for every face value (e.g $100) corresponds to a present value (amount which you invest).

For example a face value of $100 now will have a present value of $99.973
Meaning if you want to invest $1000 in this T-Bill, you will pay $999.73 and when the T-bill matures, you will receive back your $1000.

you can check online for the lastest T-Bill rates.
Singapore's rate are lesser than US T-Bill.

hope that helps
;)
 

code

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Jan 9, 2005
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#3
check out www.sgs.gov.sg

you should be able to find information there.

the yield should be higher than comparable bank fixed deposit rates. Min denomination should be 1k if i remember correctly. One key distinction from fixed deposit is that the price of the bond may vary from the date of issue to redemption, so if you choose to sell (ie "withdraw your money") you are subject to price risk (ie get back less/more than your principal). Of course, if you hold till maturity, you are guaranteed to get back your principal.
 

Falcon

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#4
check out www.sgs.gov.sg

you should be able to find information there.

the yield should be higher than comparable bank fixed deposit rates. Min denomination should be 1k if i remember correctly. One key distinction from fixed deposit is that the price of the bond may vary from the date of issue to redemption, so if you choose to sell (ie "withdraw your money") you are subject to price risk (ie get back less/more than your principal). Of course, if you hold till maturity, you are guaranteed to get back your principal.

I thought no matter when you choose to sell it, you will get back yr principal. Just that the interest rate might be lesser.
 

aryanto

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Feb 16, 2005
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#5
3 month fixed deposit to government.
you bid for it, either you tell your interest or go by the flow, government decide the cut-off rate from the many bids submitted, then you see if you get it or not.
sometimes if you are not lucky enough, even if you go by flow (non competitive bid) you may not be picked.
this is treasury bill.
when you go to bank tell them where is treasury service, because you want to open account and apply for sg government treasury bill.
there is no interest given, well not like bank kind of treasury bill.
it is more like if you bid for 10,000 then if your application is successful your account will be deducted by say 9980, and 3 month later you get 10,000 so you pocket an extra $20. Check out http://forums.sgfunds.com/viewtopic.php?t=903
 

Falcon

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#6
Is it more worthwhile to get this as compared to fixed deposit? Looking in terms of higher yield with little or no risk to the principal amount.
 

aryanto

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Feb 16, 2005
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#7
you can get this from as low as 1000. banks will probably laugh at you (secretly) if you put this in FD. and for 1K you get the same interest (if you put in Tbill) as you put 50K or 200K. for bank however...

oh yah, only 3 months and you need to re-apply (no roll over like bank FD)
 

code

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Jan 9, 2005
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#8
I thought no matter when you choose to sell it, you will get back yr principal. Just that the interest rate might be lesser.
This is NOT true. Treasury bills are issued by the government (ie you are lending $$ to the government). After the bills are issued, they are traded by primary dealers (banks) and the price will fluctuate. However upon maturity, the government will redeem the bills and you will get back your principal (assuming you held to maturity).
 

Falcon

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#9
This is NOT true. Treasury bills are issued by the government (ie you are lending $$ to the government). After the bills are issued, they are traded by primary dealers (banks) and the price will fluctuate. However upon maturity, the government will redeem the bills and you will get back your principal (assuming you held to maturity).
So am i right to say there is no guaranteed profit at the end of maturity? Unlike fixed deposit which they promise you will get certain interest rate?
 

code

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Jan 9, 2005
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#10
go to the website as mentioned. You should be able to understand what bonds and t-bills are better.
 

V

vince123123

Guest
#11
Other than sgfunds.com is there a better investment/funds/finance forum in Singapore? Something like the CLubsnap of the investment world?
 

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