Average rates on treasury bills drifted lower at the auction Monday as demand continued to increase after the central bank confirmed its commitment to further monetary policy easing this year.
Yield on the 91-day treasury bills eased to 5.118 percent from 5.178 percent while the 182-day bill slipped to 5.496 percent from 5.548 percent. Average rate on the 364-day treasury bill declined to 5.697 percent from last week’s 5.773 percent.
Total tenders reached P118.9 billion, which is 5.4 times more than the offered amount of P22 billion.
With average rates low and demand high, the Bureau of Treasury increased the accepted amount to P30.8 billion.
Last week, Bangko Sentral ng Pilipinas Gov. Eli Remolona said the central bank remains committed to easing monetary policy, but the pace and magnitude of interest rate cuts, as well as adjustments to banks’ reserve requirement ratio, will be primarily determined by economic growth and inflation.
The next meeting of the BSP’s Monetary Board meeting is scheduled April 3.
