US Treasuries available on Bondsupermart Live!

Why do investors invest in US Treasury Notes and Bonds?

US Treasury Notes and Bonds are issued by the US government and have a credit rating of AA+ from Fitch and S&P, and an Aa1 credit rating from Moody's. These Treasury Notes and Bonds generally offer investors a more liquid alternative to traditional fixed deposits held with banks.

4 key features of US Treasury Notes and Bonds

1) Safety: Backed by the US government, US Treasuries are widely held by central banks and sovereign wealth funds of many countries, including Japan, the United Kingdom, China, and Singapore.

2) Liquidity: They are generally considered to be highly liquid and can be easily bought or sold in the market, allowing investors to quickly convert their holdings into cash if needed.

3) Flexibility: They are available in various maturities, offering flexibility to align with different investment horizons. This can support strategies such as laddering to help generate regular income streams.

4) Potential alternative to fixed deposits: As of 19 May 2025, US Treasuries were yielding above 3.8% and longer-dated US Treasuries were even yielding more than 5% . Due to the varying terms and conditions for fixed deposits, including but not limited to minimum investment sums, penalties for early withdrawal and promotional rates, investors are encouraged to obtain more information on such fixed deposits for a comparison of both products in the context of their individual investment objectives and risk tolerance. For current yields, please visit Bondsupermart Live.

4 risk factors to consider before investing in US Treasury Notes and Bonds

1) Credit Rating Risk: Although US Treasuries are still rated very highly, a further downgrade in their future credit rating could impact their market value and investor confidence.

2) Liquidity Risk: While US Treasuries are generally highly liquid, market conditions or economic events could result in a wide bid-ask spread.

3) Foreign Exchange Risk: If you are purchasing US Treasuries using a non-USD currency (e.g. SGD), if the USD depreciates against SGD, your actual returns might be lower in SGD terms. Conversely, if the USD appreciates against SGD, your actual returns would be higher in SGD terms, benefiting from both the US Treasury returns and foreign exchange gains.

4) Interest Rate Risk: When the Federal Reserve increases the federal funds rate, existing US Treasuries with lower interest rates may experience a decrease in their market price. This is because newly issued Treasuries would offer higher yields, making the existing ones less attractive to investors. On the other hand, when the federal funds rate is lower, existing US Treasuries with higher interest rates may experience an increase in their market price.

What is Bondsupermart Live?

Bondsupermart Live is where you can transact your bonds, live! Enjoy an all new live trading experience for bonds where you can set your own price, view live market data, see live market depth and enjoy enhanced liquidity!

Bondsupermart Live Trading Hours

Mondays to Fridays, excluding scheduled holidays

·         Pre-opening: 8.30am – 8.58am

·         Non-cancellation period: 8.58am – 9.00am

·         Continuous Trading: 9.00am – 5.30pm

Want to learn more about Bondsupermart Live? Head over to this article to learn more!

Pre-requisite before trading on Bondsupermart Live

Click Here to activate your account. Ensure that you have completed the Risk Warning and Disclosure Statement, as well as the W-8BEN Declaration (you must have the green ticks) in order to invest in US Treasuries.

If you are also looking to invest in corporate bonds listed on Bondsupermart Live, you will need to be an Accredited Investor (AI) and your Account Setting page should look like the screenshot above. AI declaration is simple and can be performed online with FSMOne!

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Call us at +65 6557 2853 or send us an email at clienthelp@fundsupermart.com if you have encountered any difficulties in getting started.

Disclaimer:

Investment products involve risk, including the possible loss of the principal amount invested. Past performance is not indicative of future performance and yields may not be guaranteed.

All materials and contents found in this advertisement are strictly for information purposes only and should not be considered as an offer or solicitation to deal in any capital market products. You should consider carefully if the investment products you are purchasing are suitable for your investment objective, experience, risk tolerance and other personal circumstances. If you are uncertain about the suitability of the investment product, please seek advice from a financial adviser, before making a decision to purchase the investment products.

While iFAST and/or any of its third-party providers has/have tried to provide accurate and timely information, there may be inadvertent omissions, inaccuracies, and typographical errors. Opinions expressed herein are subjected to change without notice.

This advertisement has not been reviewed by the Monetary Authority of Singapore.