Average rates on Treasury bills were mostly higher at the auction on Monday, with strong demand tempering concerns over a possible rise in inflation due to recent storms.
Inflation data for October are due Tuesday, which the Bangko Sentral ng Pilipinas expects to be within the 2.0 percent to 2.8 percent range after settling at 1.9 percent in September. Higher food prices are expected to drive inflation higher.
A steady rise in inflation rate could slow the central bank’s plan to further ease monetary policy. The BSP already cut overnight rates twice and lowered banks reserve requirement ratio, reducing funding costs for business.
Yield on the 91-day treasury bills rose to 5.605 percent from 5.586 percent last week while that on the 364-day debt paper climbed to 5.786 percent from the previous level of 5.751 percent.
Meanwhile, the average rate on the 182-day paper eased to 5.735 percent from 5.752 percent.The Bureau of Treasury awarded the entire P20 billion offered, with total tenders reaching P69.9 billion.
