Average yields on treasury bills continued to decline at Monday’s auction, driven by expectations of further local monetary easing following the U.S. Federal Reserve’s decision last week to cut interest rates.
Investor demand remained robust, with total tenders reaching P117.8 billion for the P25-billion offering, though lower than the 154.2 billion in bids recorded the previous week. The strong demand enabled the Bureau of the Treasury (BTr) to fully award the programmed amount.
The yield on the 91-day T-bill fell to 4.883 percent from 4.950 percent last week, while the 182-day tenor slipped to 5.081 percent from 5.148 percent. Meanwhile, the average rate for the 364-day security dropped to 5.195 percent from 5.272 percent.
The easing trend in domestic yields came in the wake of the U.S. Fed’s decision to lower its benchmark interest rate by 25 basis points. Fed Chairman Jerome Powell signaled that further adjustments may be warranted amid ongoing economic uncertainties—a signal that could influence the policy direction of other central banks, including the Bangko Sentral ng Pilipinas (BSP).
Market participants are now closely watching for any moves from the BSP in response to shifting global interest rate dynamics.
