Average interest rate on 91-day treasury bills declined at the auction Monday, softened by strong demand for the shorter-dated debt paper.
Total tenders for the P5 billion offered at the auction was nearly 4 times at P19.07 billion. That is nearly half the P44 billion in total bids for the P15 billion offer for the three treasury bill maturity.
Strong market appetite pushed yield on the 91-day paper down to 5.698 percent from the previous week’s 5.719 percent.
Yield on the 182-day paper stood at 5.904 percent from 5.886 percent last week while the average rate on the 364-day bill was a touch higher at 6.046 percent from 6.043 percent previously.
The market now awaits data for May inflation, which the Bangko Sentral ng Pilipinas projects will be within the 3.7 percent and 4.5 percent range. The central bank earlier indicated it may cut interest rates if inflation eases within the 2 percent to 4 percent target range.
