Treasury bill rates have been falling steadily as inflation drops. I gathered the following data to show what’s happening.
| Inflation | 91-day T-bill | 182-day T-bill | Week | |
| December | 15.40% | 16.68% | 17.94% | Dec-17 |
| January | 13.30% | 15.94% | 17.10% | Jan-30 |
| February | 13.20% | 15.94% | 16.99% | Feb-27 |
| March | 12.80% | 17.51% | 17.19% | Mar-27 |
| April | 13% | 15.44% | 16.47% | Apr-24 |
| May | 12.60% | 13.21% | 15.02% | May-22 |
| June | 11.91% | 13.29% | Jun-16 |
The good news here is that government’s finances will be helped by the drop in borrowing costs. Also, this drop in T-bill yields will draw investors to alternative investments like stocks which is good for the GSE. Also, businesses should find it cheaper to borrow as lending to government does not look so attractive at the moment and thus investors will look to business for higher returns.