Treasury bill yields were higher at Monday’s auction, reflecting the rise in secondary market rates as the central bank took a more measured policy step in their monetary policy easing.
The Bangko Sentral ng Pilipinas has reduced the banks’ deposit reserve ratios and twice cut overnight rates by 25 basis points each time, the last reduction delivered just last week. The BSP, however, suggested the balance of risk to inflation could temper future policy easing.
Average rate on the benchmark 91-day T-bill rose to 5.463 percent from last week’s 5.444 percent while that on the 182-day T-bill rose to 5.731 percent from the previous auction’s 5.668 percent. Meanwhile, the yield on the 364-day debt paper rose to 5.686 percent from 5.623 percent.
The Bureau of Treasury awarded the full P20 billion offered at Monday’s auction—P6.5 billion each for the three-month and six-month treasury bills and P7 billion for the one-year debt paper. Total tenders reached P55.07 billion, up from 51.70 billion last week.
