T-bill rates decline
Yields on short-dated local debts of the government mostly declined during Monday’s sale of Treasury bills (T-bills) amid growing expectations of another soft inflation print for May.
Auction results showed the Bureau of the Treasury (BTr) raised P28.6 billion via T-bills, larger than its initial target of P25 billion.
Total demand for the offering hit P116.3 billion, exceeding the original size of the issuance by 4.7 times.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said the BTr might have taken advantage of the lower rates sought by domestic creditors amid market consensus that pegged a lower inflation in May.
An Inquirer poll of 13 economists last week yielded a median estimate of 1.3 percent for last month’s price growth. If realized, the figure that the Philippine Statistics Authority would report on June 5 would be lower than the 1.4 percent reading in April.
“The Treasury bill average auction yields again mostly slightly eased before the latest inflation data in May 2025 to be announced on Thursday, which is expected to ease further again,” Ricafort said, adding that another month of tame inflation could prompt more easing action from the central bank.
The BTr said the 91-day T-bill fetched an average rate of 5.452 percent, lower than the previous week’s 5.468 percent.
But the average yield for the 182-day debt paper went up to 5.565 percent from 5.551 percent before.
Lastly, investors sought an average rate of 5.680 percent for the 364-day T-bill, cheaper than the 5.694 percent seen in the last offering.
