Treasury bill (T-bill) yields were higher at the auction Monday as markets await clearer monetary policy direction from the central bank after September inflation number printed higher.
The central bank said it is ready to raise the policy rates should inflation continues to accelerate in October. The Bangko Sentral ng Philippines is set to hold its next monetary board meetingin early November to determine whether the interest rate infrastructure remains appropriate.
Yield on the 91-day T-bills rose to 5.806 percent from 5.698 percent, with total tenders for the P5 billion on offer hitting P6.898 billion. The treasury accepted P4.788 billion in tenders, with rejections meant to tame the yield increase.
Yield on the 182-day paper also increased to 6.115 percent from 6.023 percent while that on the 364-day bill climbed to 6.305 percent from 6.215 percent at last week’s auction.
The Bureau of Treasury offered P5 billion each for the six- and 12-month papers.
Total tenders for the six-month paper reached P7.646 billion but only P4.41 billion was accepted. For the one-year bill, total award was P3.32 billion out of the P8.02 billion bids.
