Average rates on Philippine treasury bills fell across the board at Monday’s auction, as investors positioned for the possibility of further monetary easing amid signs that economic growth may be losing steam.
Demand was robust, with total bids reaching P155.98 billion—nearly six times the P27 billion on offer—giving the Bureau of the Treasury room to accept a higher-than-planned P37.8 billion. Each of the three tenors—91, 182, and 364 days—was awarded P12.6 billion.
The yield on the 91-day bill eased to 4.666 percent from 4.723 percent last week. The 182-day paper saw its average rate slide to 4.751 percent from 4.817 percent, while the 364-day bill fell to 4.827 percent from 4.888 percent.
Market participants said the decline reflects growing expectations that the Bangko Sentral ng Pilipinas could still have room to cut rates if upcoming data confirm a softer growth trajectory. The rally also suggests that investors are comfortable locking in yields ahead of potentially lower rates later this year.
Still, central bank officials have been careful to temper expectations. BSP Governor Eli M. Remolona Jr. said last week that another rate cut remains uncertain, and that further policy easing will review depend on the latest gross domestic product data at its Feb. 19 meeting. Remolona said weaker-than-expected growth alone would not automatically trigger further easing.
The central bank reduced rates by 25 basis points in December, its fifth consecutive cut, bringing the benchmark policy rate to a more than three-year low of 4.5 percent. Since August 2024, borrowing costs have been lowered by a cumulative 200 basis points.
