Treasury bill rates declined again at the August 15 auction, marking the fifth consecutive weekly drop. The 91-day bill now yields 10.1374 percent, down from 10.2009 percent previously. The 182-day rate eased to 12.2302 percent from 12.2540 percent, while the 364-day bill declined to 13.0865 percent from 13.1022 percent. Despite the continued decline in yields, demand weakened significantly. The government targeted GH¢4.24 billion across all three maturities but received bids totaling only GH¢3.01 billion. Of these, it accepted GH¢2.73 billion. This marked the second straight week of undersubscription, with this week’s auction covering just 64 percent of the target.

The sharp fall in subscription levels is being attributed to ongoing investor preference for Bank of Ghana’s 56-day bills, which are currently priced at the Monetary Policy Rate of 25 percent. Since the start of August, these bills have been issued at full policy rate levels, reversing weeks of below-MPR pricing. The result has been a significant diversion of market liquidity away from lower-yielding government treasury instruments. This yield gap, which first emerged in early July, appears to be steering demand firmly toward the higher-yielding BoG securities.

Nonetheless, the 91-day T-bill rate remains at its lowest level in over a decade, continuing a broader easing trend in yields through 2025. This trend reflects the impact of improving macroeconomic conditions, including ongoing fiscal restraint, a strengthening and more stable cedi, and sharply lower inflation, which stood at 12.1 percent in July. These fundamentals have helped preserve investor interest in cedi-denominated assets even as yields decline and BoG alternatives compete for liquidity.

The next T-bill auction is scheduled for August 22, with a target issuance of GH¢6.43 billion across all maturities.