Treasury Bills vs Government Bonds in Ghana: What Investors Should Know

The two instruments sit at opposite ends of the same curve. One is built for liquidity. The other is built for income. The choice between them comes down to what you need your money to do—and when you need it back.

The Core Distinction

Treasury bills and government bonds are both debt securities issued by the Republic of Ghana. The government borrows your money, promises to pay it back, and compensates you for the use of your capital.

But they are not the same instrument.

Treasury bills are short-term. They mature in 91, 182, or 364 days—under a year . You buy them at a discount and receive the full face value at maturity. The difference is your return .

Government bonds are longer-term. They mature in two years or more. They pay periodic interest—typically semi-annually—throughout the life of the bond . You receive a stream of coupon payments and your principal back at maturity.

One is a parking space. The other is an income stream.

How They Work in Practice

Treasury Bills: Discount Pricing

When you buy a Treasury bill, you do not pay the face value. You pay less. The Bank of Ghana publishes both the discount rate and the equivalent investment rate so you can see your true return .

Suppose a 182-day bill is auctioned at an annual discount rate of 11.7126%. On a GH¢1,000 face value, the calculation works like this :

• The fraction of the year: 182 ÷ 365 = 0.4986

• The discount applied: 11.7126% × 0.4986 = 5.8403%

• The price you pay: GH¢1,000 × (1 − 0.058403) = GH¢941.60

• Your return at maturity: GH¢58.40 on a GH¢941.60 investment, which annualises to approximately 12.83%

This is the practical reality of bill investing. The quoted discount rate is not the same as your annualised yield. The investment rate—what you actually earn—is higher.

Government Bonds: Coupon Payments

Government bonds work differently. You invest the face value—or a price close to it—and receive periodic coupon payments. Most Ghana government bonds pay coupons semi-annually .

A bond with a 12% coupon on GH¢50,000 pays GH¢3,000 every six months. The coupon rate is fixed at issuance. If you hold the bond to maturity, you receive that stream of payments plus your principal back.

The minimum bid for a government bond is GH¢50,000, with multiples of GH¢1,000 thereafter . This is significantly higher than the entry point for Treasury bills, which many banks offer at lower minimums .

The Current Yield Environment

The fixed-income market in Ghana has shifted dramatically in 2026.

Treasury bill rates have collapsed. The 91-day bill fell to 4.60% at the October 12, 2026 auction, down from 4.64% the previous week . The 182-day bill dropped to 6.28%, and the 364-day bill fell to 9.80% .

This matters because inflation stood at 5.2% in September 2026 . The 91-day bill now offers a negative real return. Investors holding cash in short-term bills are losing purchasing power.

Bond yields remain attractive. Two-year, three-year, and five-year bonds are trading between 11% and 12.6%, according to Finance Minister Dr. Cassiel Ato Forson . Restructured DDEP bonds offer even higher yields on the secondary market, ranging from 13.86% to 14.93% depending on maturity.

The gap between short-term bills and longer-term bonds is now 400 to 500 basis points on the longer maturities. That is the premium the market is paying for duration.

Tax Treatment: A Critical Advantage

For individual investors in Ghana, interest income on government securities is exempt from tax .

This applies to both Treasury bills and government bonds. The exemption means the yield you see is the yield you keep. There is no withholding tax deducted at source, no reduction in your net return.

For investors comparing government securities to bank deposits or corporate bonds—where interest is taxable—this exemption is a significant advantage. A 12% bond yield with no tax is worth more than a 12% corporate bond yield subject to income tax.

How to Buy Each Instrument

Treasury Bills

Treasury bills are issued weekly through the primary auction. You can access them through:

• Commercial banks – Most banks offer Treasury bill purchase services, often with lower minimums than bonds

• Brokers – Licensed brokers can facilitate bill purchases

• Digital platforms – The Fidelity Mobile App, Standard Chartered SC Mobile, and Absa app allow customers to buy and sell government securities digitally

Government Bonds

Government bonds are issued through Bond Market Specialists. The appointed specialists for 2026 are Absa Bank, CalBank, Fincap Securities, GCB Bank, One Africa Securities, and Stanbic Bank .

Bond issuance follows a book-building format. Bids are accepted on a yield basis. All successful bids clear at a single clearing level. If the auction is oversubscribed, allocation is at the discretion of the issuer .

You must register with the Central Securities Depository (CSD) before you can buy or sell bonds. Your ownership is recorded in a book-entry account—there are no physical certificates.

Which One Is Right for You?

Choose Treasury bills if:

• You need liquidity and may need to access your money within a year

• You are parking cash for a short period

• You want the lowest possible entry point

• You are comfortable with lower yields in exchange for flexibility

Choose government bonds if:

• You want regular income through coupon payments

• You can lock up your capital for two years or more

• You want to capture the higher yields available on the longer end of the curve

• You have GH¢50,000 or more to invest

The current environment favours duration. Short-term bill yields have fallen below inflation, offering negative real returns. Bonds, by contrast, offer positive real returns with tax-free income. For investors who can tolerate the lock-up period, the yield pick-up is substantial.

But liquidity matters. If you need your money back quickly, a bond is not the right instrument. The secondary market for Ghanaian bonds is thinner than in developed markets, and selling a large position quickly may require accepting a discount.

Quick Facts

Frequently Asked Questions

1. What is the difference between Treasury bills and government bonds in Ghana?
Treasury bills are short-term instruments maturing in 91, 182, or 364 days, sold at a discount. Government bonds are longer-term (2 years and above) and pay periodic semi-annual coupon payments .

2. What is the minimum investment for each?
Treasury bills have lower minimums, often accessible through banks at small amounts. Government bonds require a minimum bid of GH¢50,000 .

3. What are current Treasury bill rates in Ghana?
As of October 2026, the 91-day bill yields 4.60%, the 182-day bill 6.28%, and the 364-day bill 9.80% .

4. What are current government bond yields in Ghana?
Two-year, three-year, and five-year bonds are trading between 11% and 12.6% . Restructured DDEP bonds offer 13.86% to 14.93% on the secondary market.

5. Are government securities tax-free in Ghana?
Yes. Interest paid to individuals on bonds issued by the Government of Ghana, including Treasury bills and bonds, is exempt from tax .

6. How do I buy Treasury bills in Ghana?
Through commercial banks, brokers, or digital platforms like the Fidelity Mobile App and Standard Chartered SC Mobile.

7. How do I buy government bonds in Ghana?
Through Bond Market Specialists: Absa Bank, CalBank, Fincap Securities, GCB Bank, One Africa Securities, and Stanbic Bank. You must register with the CSD first .

8. Which is better: Treasury bills or government bonds?
It depends on your goals. T-bills offer liquidity and short-term parking. Bonds offer higher yields and regular income but require longer lock-up periods. The current environment favours duration, as short-term bill yields are below inflation

Source: Accra Street Journal

Last Updated on October 16, 2026 by Samuel Kwame Boadu

Samuel Kwame Boadu

Samuel Kwame Boadu is a Ghanaian media entrepreneur and storyteller with a passion for amplifying urban voices and uncovering everyday truths. He is the Editor-in-Chief and Founder of Accra Street Journal, a dynamic digital platform dedicated to capturing the pulse of Ghana’s capital—its people, culture, challenges, business, sports and innovations.

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