Average rates of Treasury bills continued to decline at Monday’s auction, driven by the Bangko Sentral ng Pilipinas’ recent policy rate cut and growing expectations of monetary easing by the U.S. Federal Reserve.
Investor demand remained robust, with total bids surging to P154.15 billion—more than six times the P25 billion on offer.
Despite the overwhelming interest, the Bureau of the Treasury (BTr) opted not to upsize the auction, signaling confidence that yields could fall further amid a favorable inflation outlook and external policy support.
The 91-day T-bill saw its average yield dip below 5 percent, settling at 4.95 percent, down from 5.046 percent last week.
Yields on the longer tenors followed suit. The 182-day T-bill fetched an average of 5.148 percent, compared to 5.222 percent previously. Meanwhile, the 364-day T-bill saw rates fall to 5.272 percent, down from 5.376 percent a week earlier.
The auction results reflect a market increasingly pricing in further policy loosening, both locally and globally. With inflation remaining within target, the Treasury appears poised to maintain its current strategy, maximizing funding efficiency while keeping borrowing costs in check.
The Federal Reserve is scheduled to hold its policy meeting this week, and many in the market project it will trigger its first rate cut since December. The BSP, on the other hand, is scheduled to holed its next monetary policy meeting on October 9.
