MANILA – The rates of treasury bills (T-bill) declined across-the-board on Monday partly on expectations of a sustained low interest rate environment.
The average rate of the 91-day paper slipped to 1.078 percent, the 182-day to 1.348 percent, and the 364-day to 1.563 percent.
These were at 1.118 percent, 1.372 percent, and 1.577 percent for the three- and six-month and the one-year papers during the auction last June 14.
"Liquidity remains strong and stable inflation pushes down rates," National Treasurer Rosalia de Leon told journalists in a Viber message.
De Leon expects rates to remain low "as markets anticipate MB (Monetary Board) to hold rates."
She is referring to the Bangko Sentral ng Pilipinas' (BSP) policy-making MB, which will have its rate setting meeting on Thursday.
The Board is widely expected to keep the central bank's key rates steady due in part to its expectations that inflation for both this and next year will stay within the central bank's 2-4 percent target band.
The Bureau of the Treasury (BTr) offered all the tenors for PHP5 billion, and the auction committee fully awarded the 91- and 182-day papers.
The committee upsized the award for the one-year paper to PHP7 billion after it doubled the non-competitive bids.
Total bids for the three-month paper reached PHP 15.75 billion while it amounted to PHP18.967 billion for the six-month and PHP24.347 billion for the one-year. (PNA)
