Treasury bill yields continued to climb at Monday’s auction as investors waited for September inflation data that could influence the Bangko Sentral ng Pilipinas’ monetary policy decision later this month.
The Bureau of the Treasury raised P45.7 billion from the auction, below the P42-billion total offering for T-bills and the 35-day commercial bill. Demand remained strong, however, with total tenders reaching P79.3 billion.
The Treasury awarded P36.8 billion in T-bills after rejecting some 91-day tenders to temper the rise in borrowing costs. It offered P20 billion of the three-month debt paper but awarded only P14.8 billion.
The average rate on the 91-day T-bill rose to 5.667 percent from 5.535 percent at the previous auction.
Yields on longer-dated T-bills also moved higher, with the 182-day rate rising to 5.971 percent from 5.862 percent and the 364-day rate increasing to 6.214 percent from 6.115 percent.
The firmer rates came as the market weighs the inflation outlook and its potential implications for the BSP’s policy path. Higher-than-expected inflation could reinforce caution on further rate cuts, while a softer reading could give policymakers more room to ease.
The Treasury also capped the 35-day commercial bill offering at P8.9 billion, which fetched an average rate of 5.229 percent. The issue was 1.1 times oversubscribed, drawing P10.7 billion in tenders.
The auction underscored the market’s willingness to lend to the government, but at increasingly higher rates, particularly for longer maturities. That suggests investors are demanding more yield as they assess inflation, monetary policy, and the broader interest-rate outlook.
September inflation data are due before the BSP’s next policy meeting, making the reading a key input for both investors and policymakers as the central bank weighs its next move.
