Gov’t raises fresh P15B from T-bills

MANILA, Philippines — The government has raised a fresh P15 billion from Monday’s auction of Treasury bills (T-bills), even as rates were mixed due to slower-than-expected inflation data in May.

The Bureau of the Treasury (BTr) said the auction attracted P42.4 billion in offers, nearly three times the original size of the issuance although slightly lower compared with the previous week’s P44 billion.

Broken down, the 92-day T-bill fetched an average rate of 5.667 percent, lower than 5.698 percent in the previous auction last week. The yield on the 364-day T-bill was 6.039 percent, lower than the previous week’s 6.046 percent.

Meanwhile, the yield on the 183-day debt paper was at 5.908 percent, a bit higher than 5.904 percent in the previous auction.

“Treasury bill average auction yields mostly corrected slightly lower after slower-than-expected inflation data in May,” Rizal Commercial Banking Corp. chief economist Michael Ricafort said in a Viber message.

Inflation accelerated to 3.9 percent in May, higher than the 3.8 percent in the previous month due to higher costs of utilities and transportation, but some analysts had expected it to overshoot the target ceiling this year of 4 percent.

READ: May inflation rises to 3.9%, highest in five months

Ricafort also said the lower auction yields were due to “less hawkish” statements from local authorities.

Bangko Sentral ng Pilipinas Governo Eli Remolona Jr. said that the Monetary Board could start rate cuts ahead of the US Fed despite the weaker peso.

The government is looking to raise P195 billion from the local market via T-bills and P390 billion from Treasury bonds.