Bonds pay far more than they did at the start of the decade. At the onset of 2022, a six-month US Treasury bill yielded about 0.20%. After three cuts in the second half of 2025, the Federal Reserve raised its target range to 3.75% to 4.00% on 16 September 2026, and the iShares 1-3 Year Treasury Bond ETF had a 30-day SEC yield of 4.00% at the end of June 2026. Check the live yield for your chosen maturity before committing.
While Americans can buy Treasury Bonds directly through TreasuryDirect.gov, it’s not as straightforward for Singaporean investors. The good news is that it is still possible to invest in US Treasury Bonds from Singapore through different products.
In this article, we will provide a step-by-step guide on how Singaporean investors can invest in US Treasury Bonds, including T-bills and T-notes, through the secondary market or ETFs. By the end of this article, we hope you’ll understand the process and be ready to invest in US Treasury Bonds from across the pond.
What are US Treasury Bonds?
US Treasury Bonds are debt securities issued by the United States Department of the Treasury to finance government operations and pay for public services. They are backed by the full faith and credit of the US government, making them one of the safest investment options available.
Treasury bonds have a fixed interest rate and a maturity date ranging from a few months to thirty years. They are sold at auction and can be purchased by individuals, corporations, and foreign governments. In the US, interest earned on Treasury Bonds is exempt from state and local taxes. For non-US investors, interest on Treasuries held directly is generally exempt from US withholding tax under the portfolio interest exemption.
Keep in mind that investing in US bonds brings currency risk: if the SGD rises against the USD, you lose part of your return when you convert back.
Treasury Bonds vs Treasury Notes vs Treasury Bills
Treasury Bonds, Treasury Notes, and Treasury Bills are all debt securities issued by the US Department of the Treasury but differ in maturity dates and interest rates.
- Treasury Bills (T-bills) have the shortest maturity date, typically less than one year, and are sold at a discount to their face value. They are used for short-term government funding and are the closest Treasury product to cash.
- Treasury Notes (T-notes) have a maturity date of 2 to 10 years and pay interest every six months. They usually yield more than T-bills and less than Treasury Bonds, although this can change when the yield curve is inverted.
- Treasury Bonds (T-bonds) have the longest maturity date, ranging from 10 to 30 years, and pay interest every six months. They usually offer the highest yields of the three, but their prices are also the most sensitive to interest rate changes.
How to buy US Treasury Bonds from Singapore
US citizens and residents can buy Treasuries directly through TreasuryDirect.gov, but Singapore residents who are not US persons are not eligible. In essence, your options are limited to purchasing bonds on the secondary market or through bond exchange-traded funds (ETFs).
Please note that some brokers do not support these products, so below, we’ll focus on Interactive Brokers, an online broker founded in 1978, with more than 5.5 million client accounts and access to 170 markets in 40 countries. Singapore clients are served by Interactive Brokers Singapore Pte. Ltd., regulated by the Monetary Authority of Singapore (MAS).
Saxo is another broker you can use to invest in US Treasury Bonds and Treasury ETFs. Explore their websites and decide for yourself.
Option 1: Buy US Treasury Bonds in the Secondary Market
Interactive Brokers (IBKR) provides the opportunity to invest in T-Bills and Treasury Bonds in the secondary market. Treasury investments are highly liquid and feature low spreads. Additionally, the commission per trade is 0.002% of the face value (minimum $5).
Interactive Brokers offers a universe of more than 1 million bonds, including US government securities and corporate bonds. You can use its Bond Scanner to search by maturity, yield and interest rate.
You need to request trading permission for bonds in your account settings before you can buy them.
One advantage of holding Treasuries directly rather than through a fund: interest paid on US Treasury securities to non-resident aliens is generally exempt from US withholding tax under the portfolio interest exemption, while distributions from US funds may be treated differently depending on how the fund designates them.
Here’s an example of a US bond on IBKR’s Web platform:
Option 2: Buy US Treasury Bond ETFs
When selecting a Government Bond ETF, evaluating both the risk and return it offers is crucial. Yield-to-maturity represents the anticipated return on investment. Duration indicates how sensitive the fund is to changes in interest rates: a duration of 15 means a one percentage point rise in rates would cut the price by roughly 15%.
If you are an Interactive Brokers user, you have the option to purchase a variety of bond ETFs. They track short-term and long-term bonds alike. Some notable examples include:
1. iShares 1-3 Year Treasury Bond ETF (SHY):
Summary of the characteristics of SHY ETF (factsheet, data as of 30 June 2026):
- Expense ratio: 0.15% (per annum)
- Benchmark: ICE U.S. Treasury 1-3 Year Bond Index
- Holdings: 89
- Weighted average maturity: 1.96 years
- Effective duration: 1.87 years
- 30-day SEC yield: 4.00%
- Currency: USD
- Domicile: United States
2. Vanguard Intermediate-Term Treasury ETF (VGIT):
Summary of the characteristics of VGIT ETF (fund page):
- Expense ratio: 0.03% (per annum)
- Benchmark: Bloomberg US Treasury 3-10 Year Index
- Total net assets: $39.7 billion
- Average maturity: about 5.6 years
- Average duration: about 5.2 years
- Currency: USD
- Domicile: United States
3. iShares 20+ Year Treasury Bond ETF (TLT):
Summary of the characteristics of TLT ETF (factsheet, data as of 30 June 2026):
- Expense ratio: 0.15% (per annum)
- Benchmark: ICE US Treasury 20+ Year Bond Index
- Holdings: 46
- Weighted average maturity: 26.03 years
- Effective duration: 15.31 years
- 30-day SEC yield: 4.89%
- Currency: USD
- Domicile: United States
Note the duration figure on TLT. It is a long-dated fund and its price moves a great deal when rates move, which surprises investors who assume any government bond fund behaves like a cash substitute. Here is how the three compare:
| ETF | Expense ratio | Effective duration | Interest rate sensitivity |
| SHY (1-3 years) | 0.15% | 1.87 years | Low |
| VGIT (3-10 years) | 0.03% | About 5.2 years | Medium |
| TLT (20+ years) | 0.15% | 15.31 years | High |
Sources: iShares factsheets (30 June 2026) and Vanguard fund page.
All three ETFs are unhedged to the SGD, so you are accepting currency risk. If your account balance is in SGD and you invest in USD, you will also pay your broker’s currency conversion fee. All three are also domiciled in the United States, which matters for tax, as explained below.
Tax considerations for Singapore investors
Singapore tax: Singapore does not tax capital gains, and foreign-sourced investment income received by individuals is generally not taxed in Singapore. That makes the US side the one to watch.
US withholding tax: Singapore has no income tax treaty with the US, so US dividends paid to Singapore residents are subject to 30% withholding. Interest on Treasuries you hold directly is generally exempt under the portfolio interest exemption, and part of a US bond fund’s distributions may qualify as exempt interest-related dividends, depending on how the fund designates them.
US estate tax: US-domiciled ETFs and US-listed securities are US-situs assets. For non-resident aliens, the exemption is only USD 60,000, against USD 15 million for US citizens in 2026, with rates up to 40% above that. If your position could grow past that level, UCITS Treasury ETFs domiciled in Ireland are worth comparing, since they do not carry the same exposure.
None of the above is tax advice, so confirm your position with a qualified adviser.
The pros and cons of investing in US Treasury Bonds from Singapore
Pros
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High Credit Quality: US Treasury Bonds are backed by the US government, which makes them highly creditworthy, and the possibility of default is minimal.
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Liquidity: Treasury Bonds can be easily bought and sold, with prices based on the coupon rate relative to current interest rates.
- Withholding: interest on Treasuries held directly by non-resident aliens is generally exempt from US withholding tax.
Cons
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Interest rate risk: As interest rates rise, the price of your bonds will fall. The longer the maturity, the sharper the effect.
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Inflation risk: the interest may not compensate for inflation.
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Currency risk: movements between the USD and the SGD can work for or against you.
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US estate tax exposure: US-domiciled ETFs and securities above USD 60,000 are exposed to US estate tax of up to 40% for non-resident aliens.
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Historically lower returns: In the long run, bonds tend to perform worse than other riskier asset classes.
- A complex asset class: bond values move inversely to interest rates, and some brokers require you to request trading permission before you can buy them.
Bottom line
Investing in US Treasury Bonds from Singapore is a viable option for those looking for a stable investment. Using a platform like Interactive Brokers, investors can access the US Treasury market and purchase Treasury Bonds and T-Bills on the secondary market. Furthermore, purchasing a Government Bond ETF allows investors to diversify their portfolio by gaining exposure to various Treasury Bonds with varying durations.
It’s crucial to consider the risks involved, including currency risk and interest rate fluctuations. Evaluating the Yield-to-Maturity and Duration of a Government Bond ETF will assist you in determining the level of risk and potential returns associated with the investment.
Overall, US Treasuries can help diversify a portfolio and provide steady income, as long as you are comfortable with currency risk and, for US-domiciled funds, the US estate tax rules.
FAQs
Can Singapore residents buy US Treasuries on TreasuryDirect?
No. TreasuryDirect is only for US persons. Singapore residents can buy Treasuries on the secondary market through a broker such as Interactive Brokers or Saxo, or through Treasury ETFs.
Do I pay tax on US Treasury interest in Singapore?
Foreign-sourced investment income received by individuals is generally not taxed in Singapore, and interest on Treasuries held directly is generally exempt from US withholding tax under the portfolio interest exemption.
Which Treasury ETF has the least interest rate risk?
A short-term fund such as SHY, with an effective duration of under two years. Long-dated funds such as TLT, with a duration above 15 years, move much more when rates change.
Disclaimer: This article is for information only and does not constitute investment or tax advice. When investing, your capital is at risk and you may get back less than invested.
