MANILA – The Bureau of the Treasury (BTr) fully awarded bids for Treasury bills (T-bills) during Monday's auction.
The 91-, 182-, and 364-day T-bills fetched average rates of 5.900 percent, 6.093 percent, and 6.062 percent, respectively.
"Treasury bill average auction yields were again mostly slightly higher after the faster inflation rate at 4.4% in July 2024, the fastest in 9 months, and the faster-than-expected GDP (gross domestic product) growth rate of +6.3% that could reduce the possibility of a -0.25 local policy rate cut as early as August 15, 2024, consistent with recent signals from local monetary authorities, who also signaled that a total of -0.50 local policy rate cut remains possible in 2024," Rizal Commercial Banking Corporation chief economist Michael Ricafort said.
Last week, the average rates for the 91- and 182-day T-bills were lower at 5.828 percent and 6.062 percent, respectively.
The average rate for the 364-day T-bills, however, went down from last week's 6.074 percent.
Ricafort said T-bill average auction yields were also still slightly below the comparable short-term PHP Bloomberg Valuation Service (BVAL) yields.
The comparable BVAL yield was at 5.843 percent for the three-month tenor, 6.106 percent for the six-month tenor, and 6.198 percent for the one-year tenor.
The auction was 2.6 times oversubscribed, attracting PHP52.5 billion in total tenders.
With its decision, the BTr raised the full program of PHP20 billion for the auction. (PNA)
