Philippine Treasury bill (T-bill) yields were mixed at Monday’s auction, with average rate on 91-day debt paper lower compared to the previous auction ahead of the central bank policy meeting.
Yield on the six-month bill was up slightly while that on the 12-month T-bills declined. Total tenders reached P55.7 billion, with P39.33 billion going for the 182-day and 364-day papers.
The Bangko Sentral ng Pilipinas is expected to stand pat on interest rates after inflation accelerated in August after six months of decline due to higher food and fuel prices.
Last Tuesday, the National Treasury rejected most of the bids for the bonds due in July 2030 and awarded only a third of the P30 billion of bonds it offered to temper the increase in interest rate.
Headline inflation in August rose to 5.3 percent, the higher-end for the BSP’s forecast range.
Average rate on the 91-day treasury bills eased to 5.552 percent fro 5.575 percent last week, reflecting yield in the secondary market. The P5 billion offered at the auction was awarded in full, with total tenders reaching P16.37 billion, with nearly two thirds of the tendered amount placed as competitive bids by institutional investors.
Yield on the 182-day paper stood at 5.939 percent from the previous week’s to 5.690 percent while that on 364-day bills slipped to 6.073 percent from 6.190 percent in the previous auction.
On Tuesday, the government will auction P30 billion worth of treasury bonds originally issued as a 10-year bond due August 2033. When the bond was auctioned last month, the coupon rate was set at 6.625 percent.
