Treasury bill (T-bill) rates eased at Monday’s auction, the first conducted by the Bureau of the Treasury following the Bangko Sentral ng Pilipinas’ decision to further lower interest rates.
Total tenders for the auction reached P65.99 billion, more than triple the P22 billion amount offered by the government at its first auction of the year.
The yield on the 91-day T-bill softened to 5.782 percent, down from 5.818 percent in the previous auction held on 16 December 2024.
The average rate for the 182-day T-bill also eased to 5.911 percent, compared to the 5.975 percent rate at the December auction. Meanwhile, the yield on the 364-day T-bill retreated to 5.931 percent, down from 5.977 percent.
The volume offered at Monday’s auction is part of the government’s plan to raise a total of P264 billion through the sale of treasury bills in the first quarter of 2025.
The BSP’s policy making Monetary Board decided at its meeting in December to further cut the key interest rate by 25 basis points to 5.75 percent and indicated it may deliver additional rate reductions in 2025.
This decline in rates reflects a broader trend of easing yields, following the central bank’s recent monetary policy adjustments aimed at stimulating economic activity.
