T-bills yields rise ahead of May inflation data
Auction results showed that the BTr fully awarded bids across all tenors for a total of P40 billion. The auction was 1.8 times oversubscribed, with tenders reaching P70.5 billion.
This marked the first time that the BTr increased its award after a month of underselling throughout May.
“Treasury bill average auction yields were mostly higher for a sixth straight week, with the 91-day tenor reaching a nine-month high,” Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said.
The 91-day T-bill averaged 5.143 percent, slightly higher than 5.142 percent in the previous auction.
“The 182-day tenor corrected lower for a second straight week, while the 364-day tenor reached a two-and-a-half-year high ahead of the release of the latest local inflation data on June 5,” he added.
Average rate for the 182-day tenor dipped to 5.624 percent from 5.7 percent, while the 364-day T-bill averaged 6.269 percent, up from 6.163 percent last week.
As it is, inflation in May is widely expected to accelerate further beyond the three-year high of 7.2 percent recorded in April.
The Bangko Sentral ng Pilipinas (BSP) said on Saturday that consumer prices had likely risen between 7.1 percent and 7.9 percent, as recent rollbacks in domestic pump prices were not enough to offset broader food price pressures and peso depreciation.
