Yield on shorter-dated treasury bills rose at the auction Monday, days after the Philippine Statistics Authority reported that July inflation overshot the Bangko Sentral ng Pilipinas target range of 2 percent to 4 percent.
Inflation in July stood at 4.4 percent, the first time the annual movement in the consumer price index moved outside the BSP target range since November last year. The July CPI print raised concern the central bank won’t be able cut interest rates during its policy meeting scheduled on Thursday.
Average rate on the 91-day treasury bill rose to 5.900 percent from last week’s 5.828 percent while that on the 182-day bill climbed to 6.093 percent from 6.062 percent. Yield on the 364-day paper eased to 6.062 percent from 6.074 percent.
Total tenders for the P20 billion offered at Monday’s auction reached P52.5 billion, allowing the National Treasury to award the entire offered volume.
