Govt bonds
SGS Bonds (Singapore Government Securities)
Longer-dated government bonds, from 2 up to 50 years, that pay a fixed coupon twice a year.
What it is
In plain language.
Singapore Government Securities bonds are tradable government bonds with tenors ranging from 2 to 50 years. They pay a fixed coupon every six months and return the face value at maturity.
They sit at the safe end of the bond spectrum: the credit risk is that of the Singapore Government, which is very low. Their main moving part is interest-rate risk, since their market price falls when interest rates rise and rises when rates fall.
How it works
In Singapore, in practice.
New SGS bonds are issued through MAS auctions, applied for via DBS, OCBC, or UOB with cash, CPFIS funds, or SRS, similar to T-bills, with a S$1,000 minimum. Existing SGS bonds can also be bought and sold on the secondary market, including on SGX through a securities broker (which needs a CDP account) and through banks, where the price moves with market rates.
The fixed coupon is paid half-yearly and, like other SGS, is exempt from Singapore tax for individuals. If you hold to maturity you receive the face value back regardless of where the price traded in between.
Because tenors can be very long, an SGS bond locks in a known coupon for years. That certainty cuts both ways: it is useful for matching a future liability, but the market value can swing meaningfully before maturity if rates move.
Run the numbers
See it in your own figures.
See what investing a fixed amount here every month could grow to, at an illustrative return.
What regular investing could grow to
Investing a fixed amount every month, compounding at an illustrative return. Projected, not guaranteed.
Where it sits
Its place in the instrument map.
A sound plan is built in layers, from a guaranteed base up to small, high-risk satellites. This is the role SGS Bonds (Singapore Government Securities) plays, and the layers around it.
Small, high-risk positions you could afford to lose entirely.
Direct stocks and REITs held for long-run growth.
Funds, ETFs, and bonds that spread risk across many holdings.
Government-backed income and the SRS tax wrapper.
Guaranteed and liquid: your CPF base and emergency cash sit here.
The trade-offs
What it does well, and what to watch.
Good for
- Locking in a fixed government-backed coupon over a long horizon
- Matching a known future cash need with a bond that matures around that date
- Adding a low-credit-risk anchor to a portfolio that also holds equities
Watch outs
- Price falls when interest rates rise; the longer the tenor, the larger the swing
- Selling before maturity can crystallise a loss if rates have risen since you bought
- Returns are typically modest and may lag inflation over some periods
- The coupon is fixed, so a bond bought in a low-rate period locks in that lower income for its life
In the market
What this looks like.
Real Singapore examples, shown to make the instrument concrete. These are illustrative, not endorsements.
How it connects
Instruments that work with this.
Treasury Bills (T-bills)
Short-term Singapore Government securities of 6 or 12 months, bought at a discount and redeemed at full face value.
Full breakdown Govt bondsSingapore Savings Bonds (SSB)
A government-issued savings bond you can buy from S$500 and redeem any month with no loss of principal.
Full breakdown Govt bondsSGS / Government Bond ETFs
An exchange-listed fund that holds a basket of Singapore Government bonds, giving diversified exposure in one trade.
Full breakdown CPFCPF Special Account (SA)
The retirement-focused CPF account earning a 4% floor, locked away to compound until age 55.
Full breakdownSources
Where the facts come from.
- SGS bonds are tradable government bonds with tenors of 2 to 50 years paying a fixed coupon semi-annually, issued via auction with a S$1,000 minimum and also tradable on the secondary market.https://www.mas.gov.sg/bonds-and-bills/sgs-bonds
- Interest income from SGS for individuals is tax-exempt in Singapore.https://www.iras.gov.sg/taxes/individual-income-tax/basics-of-individual-income-tax/what-is-taxable-what-is-not/interest
See where SGS Bonds (Singapore Government Securities) fits your own plan.
This is educational, not advice. When you want a detailed look at how this fits your situation, a licensed adviser will map it to your income, CPF, and goals.