Treasury bill yields were largely higher at the auction Tuesday, just days after the Federal Reserve held U.S. interest rates steady after an unexpectedly unchanged inflation in May.
The Fed decision is likely to hold back the Bangko Sentral ng Pilipinas from cutting its key interest rates, especially at a time when the Philippine peso is showing weakness against the U.S dollar.
Yield on the 91-day treasury bill, where demand was highest, was marginally lower at 5.666 percent from 5.667 percent last week. The P5 billion offered was awarded in full after total bids hit P17.18 billion.
Average rate for the 182-day bills rose to 5.914 percent from 5.908 percent while that for the 364-day bill rose to 6.046 percent from last week’s 6.039 percent. The offered amount of P5 billion for each maturity was awarded in full, with total tenders of P11.36 billion for the six-month paper and P11.74 billion for the one-year bill.
On Wednesday, the Bureau of the Treasury will auction P30 billion worth of treasury bonds due January 2039. The 20-year bond was originally issued in January 2019 at a coupon rate of 6.750 percent.
