Treasury bill yields continued to ease at the auction on Monday, allowing the Bureau of Treasury to raise the full P20 billion on offer.
Interest rates have been on the decline since the Bangko Sentral ng Pilipinas started easing monetary policy amid a slowing inflation. The central bank has cut overnight rates and reduced the banks’ deposit reserve ratio to release extra liquidity in the financial system.
The average rate for the 91-day T-bill eased to 5.196 percent from 5.380 percent last week while that on the 182-day tenor slipped to 5.005 percent from the previous 5.480 percent. Yield on the 364-day bill declined to 5.487 percent from 5.583 percent.
Total tenders was nearly four times the offered volume aggregating P76.3 billion.
The inflation rate in September is expected to decelerate further after slowing to an 8-month low 3.3 percent in August. The September inflation data are due Friday.
