Treasury bill rates declined again at the August 8 auction, marking the fourth straight drop. The 91-day bill now yields 10.2009 percent, down from 10.2949 percent previously. The 182-day rate is 12.2540 percent, easing from 12.3594 percent. The 364-day bill rate fell to 13.1022 percent, down from 13.2465 percent.

Despite the lower yields, the auction was undersubscribed. The government received bids totaling GH¢6.89 billion against a target of GH¢8.59 billion, and accepted GH¢6.69 billion of those bids.

For the first two August auctions, the Bank of Ghana (BoG) has resumed pricing the 56-day BoG bills at the Monetary Policy Rate of 25 percent. Previously, such bills were offered at much lower rates. This return to MPR-aligned pricing has diverted investor demand away from government T-bills, contributing to the weaker subscription this week. The divergence between BoG bill rates and the MPR began in early July, and the recent shift appears to have drawn significant liquidity toward the higher-yielding BoG instruments.

Even so, the 91-day T-bill rate remains the lowest seen since late 2011, reflecting a persistent easing trend in yields this year. This trend has been supported by fiscal restraint, sharp disinflation — inflation dropped to 12.1 percent in July — and a stronger and more stable cedi. These conditions have maintained overall interest in cedi-denominated assets.

The next T-bill auction is scheduled for August 15, with a target issuance of GH¢4.24 billion across all maturities.