Treasury bill rates continued to ease this week as investors bet on the growing likelihood of monetary policy easing, following softer-than-expected inflation data in the US.
Total bids remained substantial at P85.2 billion, though slightly below last week’s P97.2 billion. With lower average yields, the Bureau of the Treasury (BTr) took advantage of strong demand and upsized its total award to P25 billion from the initial P22 billion offering.
The average rate for the 91-day T-bill declined to 4.858 percent from 4.884 percent last week, while the 182-day tenor also slipped to 5.044 percent from 5.058 percent. The six-month securities accounted for the additional issuance, reflecting steady market appetite for shorter-term placements.
Meanwhile, the yield on the 364-day T-bill was nearly unchanged at 5.093 percent versus 5.097 percent previously, indicating stable investor sentiment across the curve.
Market participants attributed the easing trend to expectations that the US Federal Reserve may soon signal a policy pivot as inflation moderates, potentially paving the way for lower interest rates globally. The Federal Open Market Committee (FOMC) is set to meet later this week, with analysts closely watching for clues on the Fed’s next move—whether to hold or begin charting a path toward rate cuts.
