The T-Bill Ladder: How to Build Constant Cash Flow Using Ghana Treasury Bills

The problem with a single Treasury bill is timing. You put money in for 91 days, or 182 days, or 364 days, and then it matures. The money comes back, and you have to decide what to do with it. If you need cash flow every month, a single bill does not help. A ladder does.

A T-bill ladder is a structure. You split your money across multiple bills with different maturity dates, so that one bill matures every month, or every quarter, while the others continue to earn. The result is a steady stream of cash and a reduction in reinvestment risk. It is the simplest way to turn a lump sum into predictable income.

The Basic Idea

Instead of putting GH¢50,000 into one 364-day bill, you divide it into four tranches of GH¢12,500. You put one tranche into a 91-day bill, one into a 182-day bill, one into a 273-day bill (if available), and one into a 364-day bill.

When the 91-day bill matures, you reinvest the proceeds into a new 364-day bill. When the 182-day bill matures, you do the same. After the first year, every 91 days, a bill matures, and you have cash on hand or the option to reinvest.

This is a rolling ladder. The maturities are staggered. The income is regular. And the structure forces discipline: you are not timing the market, you are managing the calendar.

Why It Works in Ghana

Ghana’s T-bill market has three standard tenors: 91 days, 182 days, and 364 days. These are the building blocks of any ladder. There is no 273-day bill, but the three tenors are sufficient to build a quarterly ladder (91-day), a semi-annual ladder (182-day), or an annual ladder (364-day).

The yield curve in 2026 is upward sloping. As of the Bank of Ghana auction on 26 October 2026, the 91-day rate was 4.6135%, the 182-day was 6.2929%, and the 364-day was 9.6739% . The longer tenors pay more. A ladder captures some of that higher yield while keeping a portion of the portfolio liquid at short intervals.

The other reason a ladder works in Ghana is inflation. With inflation at 5.2% in September 2026, the 91-day rate offers a negative real return, while the 364-day rate offers a positive one. A ladder that allocates a larger share to the 364-day tenor captures the positive real return without locking up the entire portfolio.

Building the Ladder: Three Approaches

The Quarterly Ladder

This is the simplest and most common structure. You split your capital into four equal tranches and buy a 91-day bill with the first tranche. When it matures, you roll it into a new 91-day bill. You then buy a 182-day bill with the second tranche and a 364-day bill with the third. The fourth tranche can be held in cash or a money market fund.

The result is a ladder with a maturity every 91 days, once the structure is running. It is suitable for investors who want frequent access to cash or who expect rates to rise and want the flexibility to reinvest.

The Semi-Annual Ladder

You split the capital into two tranches and buy 182-day and 364-day bills. The 182-day bill matures every six months and can be reinvested. This structure offers a higher average yield than the quarterly ladder because a larger share is in the longer tenor.

The Annual Ladder with a Short-Term Buffer

You put the bulk of the capital into a 364-day bill, but keep a buffer in a 91-day bill or a money market fund for emergencies. When the 364-day bill matures, you reinvest. The buffer provides liquidity without forcing you to break the longer-term investment.

A Worked Example: GH¢100,000 Quarterly Ladder

Suppose you have GH¢100,000 and you want a quarterly ladder.

• Tranche 1: GH¢25,000 in a 91-day bill at 4.6135%. Discount = GH¢25,000 × 0.046135 × (91 ÷ 365) = GH¢287.61. Purchase price = GH¢24,712.39.

• Tranche 2: GH¢25,000 in a 182-day bill at 6.2929%. Discount = GH¢784.32. Purchase price = GH¢24,215.68.

• Tranche 3: GH¢25,000 in a 364-day bill at 9.6739%. Discount = GH¢2,411.98. Purchase price = GH¢22,588.02.

• Tranche 4: GH¢25,000 held in a money market fund or a 91-day bill.

When the 91-day bill matures, you receive GH¢25,000. You can reinvest in a new 364-day bill, which will mature one year later and fill the gap in the ladder. As each bill matures, you reinvest at the longest tenor available, and the ladder becomes self-sustaining.

The Benefits

Regular cash flow. Once the ladder is running, a bill matures at fixed intervals. You have cash available without selling anything at a loss.

Reinvestment discipline. You are not deciding when to buy. The maturity schedule decides for you. This removes the temptation to time the market.

Liquidity and yield. The short tranche provides liquidity. The long tranche captures the higher yield. The ladder balances the two.

Reduced interest rate risk. If rates rise, the maturing bills can be reinvested at the new higher rates. If rates fall, the longer tranches are already locked in at the old rates. The ladder smooths the impact of rate changes.

The Limitations

No 273-day tenor. Ghana does not have a nine-month bill. The ladder is built from 91-day, 182-day, and 364-day instruments. This means the intervals are quarterly, semi-annual, or annual, not monthly.

Reinvestment risk remains. The ladder reduces the risk of being forced to reinvest a large lump sum at a bad time, but it does not eliminate it. When a bill matures, you still reinvest at whatever rate is available.

Inflation erodes the short end. The 91-day rate of 4.61% is below inflation of 5.2%. The short tranche of the ladder is losing purchasing power in real terms. The ladder works best when a larger share is allocated to the 364-day tenor, or when the investor has a separate inflation hedge.

Transaction costs and minimums. Each bill purchase involves a minimum investment and, depending on the broker or bank, a transaction cost. A ladder with many small tranches may be inefficient. The minimum bid for a T-bill through the central bank auction is GH¢50,000, though banks and brokers may offer smaller denominations .

The Practical Steps

Step 1: Decide the interval. Quarterly, semi-annual, or annual. The interval determines the tenors you use.

Step 2: Divide the capital. Equal tranches are simplest. A larger allocation to the 364-day tenor increases yield but reduces liquidity.

Step 3: Buy the bills. Through your bank, a licensed broker, or the central bank auction. Confirm the minimum investment and any fees.

Step 4: Reinvest on maturity. When a bill matures, roll it into the longest tenor that maintains the ladder structure.

Step 5: Review annually. The yield curve changes. The ladder may need to be adjusted if the spread between the 91-day and 364-day rates narrows or widens significantly.

ASJ Bottom Line

A T-bill ladder is not a complicated financial product. It is a calendar. You split your money across bills with different maturity dates so that cash arrives at regular intervals.

In Ghana, the three standard tenors—91, 182, and 364 days—make the ladder easy to build. The upward-sloping yield curve makes the longer tranches attractive. The quarterly ladder is the simplest structure, and the 364-day tranche captures the highest yield.

The ladder does not eliminate risk. Inflation still erodes the short end. Rates still change. But it turns a lump sum into a predictable stream of cash, and it removes the guesswork from reinvestment.

For an investor who wants income without selling assets and without timing the market, the ladder is the most practical tool available.

Quick Facts

Frequently Asked Questions

1. What is a T-bill ladder?
A T-bill ladder is a strategy where you split your money across multiple Treasury bills with different maturity dates, so that one bill matures at regular intervals while the others continue to earn.

2. What tenors can I use to build a ladder in Ghana?
Ghana has 91-day, 182-day, and 364-day bills. These are the building blocks of a quarterly, semi-annual, or annual ladder.

3. How does a quarterly ladder work?
You split your capital into four tranches. One goes into a 91-day bill, one into a 182-day bill, one into a 364-day bill, and one is held in cash or a money market fund. When the 91-day bill matures, you reinvest it into a new 364-day bill. The ladder becomes self-sustaining after the first year.

4. Is a T-bill ladder better than a single bill?
It depends on your goal. A single 364-day bill offers the highest yield but locks up your money for a year. A ladder offers regular cash flow and reduces the risk of reinvesting a large lump sum at a bad time, at the cost of a slightly lower average yield.

5. What is the minimum investment for a T-bill in Ghana?
The minimum bid at the central bank auction is GH¢50,000. Banks and brokers may offer smaller denominations. Confirm with your provider.

6. Does the ladder protect against inflation?
Not fully. The 91-day rate of 4.61% is below inflation of 5.2%, so the short tranche loses purchasing power in real terms. Allocating a larger share to the 364-day tenor improves the real return.

7. Can I build a monthly ladder?
Ghana does not have a 30-day bill. The shortest tenor is 91 days. A monthly ladder is not possible with standard T-bills. A quarterly ladder is the shortest interval available.

8. What happens when a bill matures?
The face value is credited to your account. You can reinvest it in a new bill, hold it in cash, or use it for expenses. In a ladder, you reinvest it into the longest tenor that maintains the structure.

9. Are T-bill ladder returns guaranteed?
The rate on each individual bill is fixed at purchase. But the rate you earn on reinvested maturities is not guaranteed—it depends on the rates available at that time. The ladder reduces reinvestment risk but does not eliminate it.

10. How often should I review my ladder?
Annually, or whenever the yield curve changes significantly. If the spread between the 91-day and 364-day rates narrows, the ladder may need to be adjusted to maintain the desired balance between liquidity and yield.