Treasury bill yields were marginally higher at the auction Monday, with the market awaiting the impact on inflation of the latest minimum wage hike in Metro Manila and a fresh round of increases in fuel prices.
Inflation in June eased to 3.7 percent in June after settling at 3.9 percent May, which normally should have sent treasury bill yields lower as it raises prospects of a rate cut by the central bank. But the latest movements in wages and fuel prices could temper expectations and may actually send inflation higher.
At the auction Monday, average rate on the 91-day treasury bills rose to 5.698 percent from 5.686 percent last week while that on the 182-day paper rose to 5.968 percent from 5.959 percent. Yield on the 364-day bill was also up slightly at 6.073 percent from 6.050 percent.
Total tenders for the P20 billion offer—P6.5 billion each for the 91-day and 182-day billion and P7 billion for the one-year maturity—reached P43.81 billion.
