Treasury bill yields ended mixed at Monday’s auction as easing headline inflation pulled down rates on shorter-dated securities, while persistent inflation risks and geopolitical uncertainty kept upward pressure on one-year debt.
The Bureau of the Treasury awarded the full P50 billion on offer after attracting P126.06 billion in bids, reflecting sustained investor appetite despite easing from the P136.8 billion received in the previous auction. Unlike recent offerings, the Treasury did not issue cash management bills.
The average yield on the 91-day Treasury bill slipped to 5.097 percent from 5.143 percent previously, while the 182-day paper eased to 5.707 percent from 5.729 percent.
In contrast, the 364-day Treasury bill edged higher to 5.972 percent from 5.964 percent, inching closer to the 6 percent mark as investors demanded a premium for holding longer-dated securities.
The mixed outcome suggests the market is balancing encouraging inflation data against uncertainty over the policy outlook. While slower headline inflation has strengthened expectations that price pressures are easing, investors remain wary of sticky core inflation and external risks that could complicate the interest rate trajectory.
Core inflation accelerated to 4.4 percent in June from 4.1 percent a month earlier, reinforcing concerns that underlying price pressures have yet to fully subside.
That has kept market attention firmly on next week’s monetary policy meeting, where analysts remain divided on whether the Bangko Sentral ng Pilipinas will maintain its policy stance or tighten further if inflation risks persist.
For now, demand for government securities remains robust, although investors appear increasingly selective about locking in yields over longer maturities as they await clearer signals on inflation and interest rates.
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