Treasury bill yields continued to climb at the auction Monday despite bid rejections, with the market still adjusting to the recent central bank rate hike and comments from the Bangko Sentral ng Pilipinas it was ready to raise interest rates further if necessary.
In an out-of-cycle move on 26 October, the BSP raised overnight rates by another 25 basis points to 6.50 percent. It now awaits October inflation and third quarter growth data to determine its action on 16 November.
The National Treasury allowed the average rate on 91-day treasury bills climb to 6.352 percent from the 6.343 percent fetched at the auction last week. Total tenders for the P5 billion offer, which was awarded in full, reached P14.79 billion.
It, however, rejected a substantial amount of bids for the 182-day and 364-day papers. Yield on the 182-day bill still rose to 6.536 percent from 6.462 percent while that on 364-day bill was flat at 6.591 percent from 6.592 percent previously.
Total tenders for the six-month paper reached P7.18 billion while that for one-year paper reached P10.35 billion. The National Treasury only awarded P3.72 billion for the one-year bill and P4.5 billion for the six-month debt instrument.
The National Treasury offered P5 billion each for the six- and 12-month treasury bills.
