T-Bills yields up


The average rate for the 91-day Treasury Bills (T-Bills) on Monday, June 27, rose to 1.910 percent from 1.759 percent last week with the market reacting to the recent central bank rate hike.

Data from the Bureau of the Treasury (BTr) also showed that yields for the 182-day and 364-day T-Bills were also higher at 2.500 percent and 2.874 percent versus 2.132 percent and 2.454 percent, respectively, last June 20.

Bureau of the Treasury office

The BTr received P14.926 billion tenders for the 91-day against a P5-billion offer. It also received P5.5 billion for the 182-day tenor and P6.75 billion for the one-year T-Bills.

National Treasurer Rosalia V. De Leon said they had full awards for both the 91-day and 364-day T-Bills, but partial award for the 182-day.

“Rates climbed up from aftermath of MB (Monetary Board) 25 bps (basis points) rate lift to cool down inflation,” De Leon said.

“Markets provided cushion as they see policy rates continue to be on a hiking cycle to let steam out of inflationary pressures. Both BSP (Bangko Sentral ng Pilipinas) and (US) Fed are expected to unleash another 25 bps if not 50 bps for BSP in August and a follow up 75 bps for Fed,” she added.

The BSP raise its policy rate by another 25 bps last June 23, as a follow up to its May 19 increase, also by 25 bps. The BSP’s RRP rate is currently at 2.5 percent. Incoming BSP chief, Monetary Board member Felipe M. Medalla, has signalled another 25 bps rate increase on Aug. 18. However, market analysts expects to see a bigger BSP policy rate hike of 50 bps on August to temper the rising inflation which is expected to hit five percent this year, and to contain a depreciating exchange rate.