Treasury Bills and government bonds are often mentioned together, and it is a genuinely common point of confusion: both involve lending money to the Government of Ghana, so what actually makes them different? This article lays out the full structural comparison, not just the risk angle.
Both Are Loans to the Same Government, Structured Differently
A Treasury Bill is a short-term loan, running for less than a year (91, 182, or 364 days), sold at a discount, meaning you pay less than face value today and receive the full face value at maturity, with no separate interest payments along the way.
A government bond is a longer-term loan, typically two years or more, that pays interest, called a coupon, at set intervals until it matures, at which point you receive your original principal back. Bonds are issued at auction and can also be bought and sold on the secondary market through licensed dealers.
Side-by-Side Comparison
| Treasury Bill | Government Bond | |
|---|---|---|
| Typical term | 91, 182, or 364 days | 2 years or more |
| How you earn a return | Discount: pay less now, receive full face value later | Periodic coupon interest payments, plus principal at maturity |
| Income timing | One amount, at maturity | Regular payments throughout the term |
| Where to buy | A bank or licensed broker, via a CSD account | Licensed banks, broker-dealers, or at scheduled auctions |
| Secondary market | Yes, via the Ghana Fixed Income Market | Yes, via the Ghana Fixed Income Market |
| Protection during Ghana's 2022–2023 restructuring | Fully excluded; every holder paid in full | Individual holders were not protected to the same degree |
The Risk Difference That Matters Most
This last row is worth its own explanation, since it is the single most important, and most often overlooked, difference between the two. During Ghana's 2022 to 2023 Domestic Debt Exchange Programme, Treasury Bills were fully excluded, and every T-bill holder was paid the full value of their investment on the original terms. Individual holders of government bonds were not protected the same way; an initial government commitment to exclude individual bondholders from any changed terms was ultimately not kept in full, as part of meeting debt-reduction targets agreed with the International Monetary Fund.
This does not mean bonds are a poor choice; longer-term instruments inherently carry more exposure to a longer stretch of economic and policy change simply by running longer, which is a structural feature of any long-duration instrument, not unique to Ghana. It does mean the two should never be assumed to carry identical protection just because both involve lending to the same government. Our full risk article covers this history in more depth.
Which One Fits Your Timeline
A Treasury Bill suits money you expect to need back within a year, where a fixed, short, easy-to-plan-around commitment matters. A government bond suits money for a goal further out, two years or more away, such as a child's education, a home, or retirement, where predictable periodic income over a longer period is more valuable than short-term flexibility. Neither is strictly "better"; they answer different questions about your own timeline. Our Investment Centre's Government Bonds page covers bonds in full depth.
FAQ
Is a government bond riskier than a Treasury Bill? Not necessarily in terms of the issuer defaulting on the debt, but the two were not protected identically during Ghana's most recent debt restructuring, and a bond's longer term inherently exposes it to more time for economic or policy change.
Can I buy a government bond the same way I buy a Treasury Bill? Similarly, through a licensed bank or broker-dealer, though bonds can also be bought at scheduled bond-specific auctions distinct from the weekly T-bill tender.
Do government bonds pay interest the same way Treasury Bills do? No. A T-bill's return comes entirely from the discount, paid once at maturity. A bond pays periodic coupon interest throughout its term, with principal returned at maturity.