Average interest rates on Treasury bills (T-bills) declined at Monday’s auction, supported by market expectations of further monetary policy easing by the Bangko Sentral ng Pilipinas (BSP).
Total tenders amounted to P93.78 billion, more than four times the offered amount of P22 billion.
The Bureau of the Treasury capitalized on strong demand, especially for 91-day and 182-day treasury bills. It offered P7 billion each for three- and six-month bills, receiving tenders of P37.86 billion and P31.38 billion, respectively.
The average rate for the 91-day T-bill dropped to 5.588 percent from 5.782 percent in the previous auction, while the 182-day bill rate fell to 5.638 percent from 5.911 percent last week. The yield on the 364-day bill eased to 5.891 percent from 5.931 percent, with the entire offered amount of P8 billion awarded in full.
The BSP signaled further monetary policy easing this year, following three rate cuts totaling 75 basis points and a reduction in the banks’ reserve requirements. The central bank is set to hold six monetary policy meetings this year, starting with the first on February 20.
