Treasury bill yields were slightly higher at the auction Monday as the market awaits July inflation data, which would provide an additional clue on whether the Bangko Sentral ng Pilipinas would finally cut interest rates next month.
Inflation data for July are due next week—several days ahead of the much-anticipated monetary policy meeting of the BSP. The central bank had decided to pause in October last year after a series of aggressive rate increases to tame inflation. Overnight borrowing rate is at 6.5 percent.
At the auction Monday, demand for T-bills was more muted compared to previous weeks, with total demand for the P20 billion of bills on offer declining to P36 billion from P47.4 billion. The offered volume was awarded in full.
The average rate on the 91-day T-bill rose to 5.779 percent from last week’s 5.743 percent while that on the 182-day paper rose to 6.014 percent from 5.991 percent. Yield on the 364-day billion inched up to 6.108 percent from 6.081 percent.
