Treasury bills and bonds: income and risks
Lending to a government or company differs from buying a share. Cash flows, maturity and repayment risk are different.
Bifinances educational guide · Updated 29 October 2026
Read the issue terms
Identify the issuer, currency, face value, purchase price, payment dates and maturity. In the UMOA market, Treasury bills support shorter financing needs, while bonds have a longer horizon. Read the specific issue notice for exact terms.
The coupon is not the total return
Illustration: a bond with CFA100,000 face value and a 6% annual coupon pays CFA6,000, provided the issuer pays. Bought for CFA96,000, its current yield is 6.25%. That is not its yield to maturity, which also depends on redemption, remaining time and fees.
Consider an early exit
An early sale may fetch less than your purchase price and depends on finding a buyer. Government bonds are not automatically risk-free: assess repayment, interest-rate, liquidity and currency risks. Match the investment horizon to when you need the money.
Educational information, not a personalised recommendation. Numerical examples are fictional. Fees, taxes and rules depend on the country and product; confirm the applicable terms before committing money.
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Editorial responsibility: Paul Arnaud DEGUENON, journalist and business development expert.