Yields on Treasury bills continued to decline at Monday’s auction, as expectations of further monetary policy easing gained ground amid slowing inflation.
Consumer price growth dropped to 0.9 percent in July, prompting the Bangko Sentral ng Pilipinas (BSP) to lower its full-year inflation forecast to 1.6 percent—well below its 2–4 percent target range.
Investor appetite remained strong, with total bids for the P25 billion T-bill offering reaching P113.75 billion, or more than four times the offer size.
Despite the robust demand, the Bureau of the Treasury (BTr) opted to hold off awarding more than the planned volume, having already raised P507.16 billion from its successful Retail Treasury Bond (RTB-31) issuance.
Rates across all tenors declined.
The 91-day T-bill settled at 5.234 percent, down from 5.287 percent last week. The 182-day paper fetched 5.435 percent, lower than the previous 5.506 percent, while the 364-day tenor dropped to 5.564 percent from 5.612 percent.
The continued drop in yields signals strong market confidence and mounting bets that the BSP may cut policy rates sooner than previously expected—especially as inflationary pressures remain subdued.
