Treasury bill yields rise at auction; market watching BSP rate action

Treasury bill yields were higher at Monday’s auction after the Bangko Sentral ng Pilipinas’ warning last week it might raise interest rates in November if inflation continues to rise.

The Bureau of Treasury awarded in full the P15 billion it offered at the auction, with total tenders reaching P40.2 billion. Bids for the three-month paper reached P16.37 billion, the six-month paper drew P17.79 billion in tenders while that for one-year bills reached P21.5 billion.

Yield on the 91-day debt paper rose to 5.595 percent from last week’s 5.552 percent while that for 181-day bill rose to 5.968 percent from 5.949 percent. Yield on the one-year paper rose to 6.119 percent from 6.073 percent.

On Tuesday, the national treasury will auction treasury bonds due September 2026 which fetched a coupon of 6.250 percent when it was originally issued earlier this month.