Treasury bill yields slipped further at Monday’s auction, with the rate on the one-year paper breaking below 5 percent as investors priced in expectations of monetary policy easing by the Bangko Sentral ng Pilipinas (BSP) later this week.
The central bank is widely expected to cut interest rates at its policy meeting on Thursday, supported by cooling inflation and softer-than-anticipated third-quarter economic growth. Market participants say these conditions have strengthened the case for a pivot toward a more accommodative stance.
Reflecting this sentiment, the average yield on the 91-day T-bill eased to 4.759 percent from 4.812 percent a week earlier, while the 182-day tenor slipped to 4.873 percent from 4.930 percent. The 364-day paper fell more decisively, dropping to 4.962 percent from 5.011 percent, marking its first dip below the 5-percent threshold in weeks.
Investor appetite remained robust. The auction drew P88.2 billion in total bids—roughly four times the government’s P22-billion offer and higher than last week’s P85.3-billion tally. The strong demand allowed the Bureau of the Treasury to award a full P25 billion in T-bills, taking advantage of the favorable momentum.
Analysts say the results underscore investors’ confidence that borrowing costs are poised to decline further, with markets positioning ahead of what could be the BSP’s first move in a broader easing cycle.
