Average rates on Treasury bills eased in Monday’s auction as investors positioned for potential monetary policy cuts by both the Bangko Sentral ng Pilipinas (BSP) and the US Federal Reserve later this month.
Robust demand enabled the Bureau of the Treasury to raise the awarded amount to P25 billion from the initial P22-billion offering. The additional P3 billion came from accepted non-competitive bids for the 182-day tenor, reflecting sustained appetite for short-term government securities.
Total tenders reached P85.3 billion, slightly higher than the previous week’s P84.9 billion and indicating continued liquidity in the market.
Rates mostly drifted lower. The yield on the 91-day T-bill slipped to 4.812 percent from 4.849 percent, while the 182-day tenor eased to 4.930 percent from 4.970 percent. The 364-day paper was the lone outlier, inching up to 5.011 percent from 5.003 percent last week.
Traders said the modest pullback in yields reflects growing conviction that central banks are nearing a shift toward further easing, with inflation continuing to cool across major economies. The BSP will hold its final policy meeting of the year on December 11, where markets expect clearer guidance on its 2026 policy direction.The Fed is scheduled to meet on December 10.
With liquidity abundant and expectations of rate cuts strengthening after a weaker-than-expected third quarter growth, the government’s short-term borrowing program continues to benefit from strong demand, keeping funding costs broadly contained even as investors await the next round of central bank signals.
