Tag: BSP

Treasury bill yields slipped across the board at Monday’s auction as expectations of another policy rate cut this year gathered steam, buoyed by benign inflation and a softening economic outlook.

Headline inflation accelerated to 1.8 percent in December 2025, its fastest pace since March last year, as higher food prices and quicker increases in clothing and footwear pushed overall prices up, government data showed. The latest figure marked a rebound from November’s slower pace but remained well below December 2024’s 2.9 percent, highlighting easing price pressures over the year.

Treasury bill yields slipped further at Monday’s auction, with the rate on the one-year paper breaking below 5 percent as investors priced in expectations of monetary policy easing by the Bangko Sentral ng Pilipinas (BSP) later this week.

Inflation cooled to 1.5 percent in November, its slowest pace in three months, as rice and corn prices stayed down and cost pressures across several key consumer items eased, the Philippine Statistics Authority reported Friday. 

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.