T-bills: Information for Individuals (2024)

For individual investors, if your application for the T-bills was successful, the T-bills holding will be reflected in your respective accounts after the issuance date.

• For cash application: You can check your CDP statement. Please note that every 10 units on the CDP statement represents S$1,000 in face value of your T-bills holdings.
• For SRS application: You can check the statements from your SRS Operator (DBS/POSB, OCBC and UOB are SRS operators).
• For CPFIS-OA application: You can check the CPFIS statement sent by your agent bank (DBS/POSB, OCBC and UOB are CPFIS agent banks).
• For CPFIS-SA application: You can check your CPF statement.

T-bills are issued via a uniform-price auction. This means that all successful applications, whether non-competitive or competitive, will be allotted the T-bills at a uniform yield, which is the cut-off yield. The cut-off yield of the T-bills auction is the highest accepted yield of successful competitive applications submitted at the auction.

In a T-bills auction, allotment starts with the non-competitive applications, followed by the competitive applications:

• Non-competitive applications are allotted first, up to 40% of the total issuance amount. If the total amount of non-competitive applications exceeds 40%, the T-bills will be allotted to non-competitive applications on a pro-rated basis. However, to ensure that the final allotments are in denominations of S$1,000, adjustments will be made by the system on a randomised basis.
• The rest of the issuance amount will be awarded to competitive applications, starting from the lowest to the highest yields submitted.

Illustration

Here is a stylised example to illustrate the allotment process for T-bills, which assumes:

For this example, the allotment will be as follows:

• The non-competitive applications will be allotted first. As the non-competitive applications of S$8,000 is within 40% of the issuance size (i.e. S$8,000), the non-competitive applications will be fully allotted. This means that everyone who submitted a non-competitive application will be allotted the amount that they had bid for, capped at S$1 million per T-bills auction.
• The competitive applications will be allotted next based on the remaining auction amount of S$12,000. The applications will be allotted starting with the lowest yield, and move to the next lowest yield and so on until the remaining auction amount of S$12,000 is reached.

In this example, the cut-off yield is 4%. All allotted applications, non-competitive and competitive, will receive the same cut-off yield of 4%.

The sum of the competitive and non-competitive applications that may be allotted to an individual is capped at 15% of the issuance size of the T-bills auction.

In addition, the maximum allotment for non-competitive applications per individual is S$1 million per T-bills auction.

In a uniform-price auction, successful non-competitive and competitive applications will be allotted the T-bills at the Cut-off Yield and Cut-off Price. The Cut-off Yield refers to the highest accepted yield of successful competitive applications, and the Cut-off Price refers to the price corresponding to the Cut-off Yield.See question on "How do I compute my initial investment amount for my T-bills based on the cut-off yield?"for the formula to compute the cut-off price.

If you have placed a non-competitive application, you may refer to the % of Non-Competitive Applications Allotted for the percentage of allotment given to non-competitive applications for the auction. If you have placed a competitive application at the Cut-off Yield, you may refer to the % of Competitive Applications at Cut-off Allotted for the percentage of allotment given to applicants who bid exactly at the cut-off yield for the auction.

Do note that in the event of over-subscription, individual allotments will be adjusted on a randomised basis to ensure that allotments are in denomination of S$1,000.

For more information on the competitive bidding behaviour in an auction, you may also refer to the Median Yield and Average Yield. The Median Yield refers to the yield corresponding to the median of successful competitive applications, while the Average Yield refers to the sum product of the amount of successful competitive applications and the respective application yields, divided by the total amount of successful competitive applications. The results for each T-bills issue may differ depending on investors’ bidding behaviour.