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prada manila T-bill yields down on softer Aug inflation
INQUIRER FILE PHOTO
Rates of Treasury bills (T-bills) offered during Monday’s sale eased following the slower-than-expected August inflation.
The Bureau of the Treasury (BTr) raised P22.6 billion from the offer, larger than its original target of P20 billion.
Article continues after this advertisementAccording to the BTr, the auction attracted P64.52 billion in offers, nearly three times the original size of the issuance and way higher compared to last week’s P53.11 billion.
FEATURED STORIES BUSINESS National ID gives more Filipinos ‘face value BUSINESS BIZ BUZZ: Unwinding Gogoro … quietly BUSINESS Polvoron maker seeks P500 million capital for expansion“The decline in T-bill yields reflects market participants continuing to price in the likelihood of Bangko Sentral ng Pilipinas (BSP) easing, a sentiment further reinforced by last month’s softer inflation figures,” a bond trader said.
READ: T-bond rate rates rises: Gov’t raises P30 billion
Article continues after this advertisementConsumer prices in August eased to 3.3 percent from 4.4 percent in the previous month and from 5.3 percent a year ago, primarily driven by more gradual hikes in food and transport costs.
Article continues after this advertisementThe central bank also said it would maintain a “measured approach” to ensuring price stability, following its decision to lower the policy rate by 25 basis points to 6.25 percent during the Monetary Board’s August meeting.
Article continues after this advertisementRates for the 91-day T-bill averaged 5.840 percent, down form last week’s 5.947 percent. The 182-day paper fetched an average yield of 5.980 percent, cheaper compared to the 6.002 percent recorded previously.
Meanwhile, the rate for the 364-day T-bill averaged 6.029 percent, down from the previous auction’s 6.040 percent.
Article continues after this advertisementThe government aims to raise P195 billion from the domestic market this month, of which P80 billion will come from T-bills and P115 billion via T-bonds.
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