MANILA – The rates of the Philippines-issued Treasury bills (T-bills) declined Monday partly due to reduction in the Bangko Sentral ng Pilipinas’ (BSP) average inflation projection for this year, National Treasurer Rosalia de Leon said Monday.
The average rate of the 91-day paper went down to 1.270 percent, the 182-day to 1.540 percent, and the 364-day to 1.810 percent.
These were at 1.278 percent, 1.549 percent, and 1.829 percent for the three and six months and one-year paper during the auction last May 10.
The Bureau of the Treasury (BTr) offered the three-month T-bill for PHP5 billion, the six-month for PHP8 billion, and the one-year for PHP12 billion.
All were oversubscribed and fully awarded.
Bids for the 91-day paper reached PHP16.965 billion, while it amounted to PHP25.109 billion for the six-month paper and PHP41.63 billion for the one-year paper.
“Strong participation as rates marginally declined. (Investors) continue to stay on (the) safe side and BSP trimming average inflation for the year to 3.9 percent, within target band,” de Leon told journalists in a Viber message.
The BTr re-offered the one-year paper over the tap facility window for PHP5 billion after the auction, she added.
Last week, the BSP’s policy-making Monetary Board (MB) slashed the central bank’s average inflation forecast for this year from 4.2 percent to 3.9 percent because of deceleration of inflation rate last March and April, the impact of lower pork import tariff, the effect of the -4.2 percent first-quarter gross domestic product (GDP) on economic activities in the first half of this year, and the appreciation of the peso against the US dollar. (PNA)
