Philippine Treasury bill yields slipped further at Monday’s auction, as investor sentiment remained buoyed by the Bangko Sentral ng Pilipinas’ recent policy rate cut and growing expectations of more easing ahead.
Tenders remained robust, reaching P80.5 billion—nearly four times the P22 billion on offer—but still lower than the P117.8 billion in total bids recorded at last week’s sale. The entire offer was awarded in full. The strong demand underscores continued confidence in government securities, even as yields edge lower.
The yield on the 91-day T-bill dropped to 4.828 percent from the previous 4.883 percent. The 182-day paper also eased slightly to 5.075 percent from 5.081 percent, while the average rate on the 364-day tenor fell to 5.171 percent from 5.195 percent.
The movement in local yields mirrors global trends, particularly after the US Federal Reserve trimmed its key policy rate by 25 basis points two weeks ago and signaled further reductions. That policy signal has been closely watched by central banks worldwide, including the BSP, which recently lowered its own benchmark rate to support domestic growth and temper inflation risks.
With inflation largely manageable and liquidity conditions stable, market watchers anticipate that the BSP has more room to adjust rates downward. Monday’s auction results suggest that investors are positioning ahead of this possibility, favoring shorter-term government securities in an environment of easing yields and heightened monetary policy flexibility.
Despite the slight dip in total tenders from the previous auction, appetite for T-bills remains strong, reflecting steady confidence in the government’s fiscal position and the broader economic outlook.
