T-bill yields mixed ahead of BSP meeting despite US-Iran deal
MANILA, Philippines – Yields on short-term government securities ended mixed on Monday as investors weighed a tentative U.S.-Iran peace deal and a possible BSP rate hike this week.
Auction results from the Bureau of the Treasury (BTr) showed that the government raised P89.6 billion out of its P90-billion program. Still, total demand reached P92.1 billion, or 1.8 times the amount offered.
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LIkewise, the BTr sold cash management bills (CMBs) to address temporary government funding gaps.The government raised P39.6 billion from the 35-day and 63-day CMBs, falling short of its P40-billion target.
In addition, the government last offered CMBs during the pandemic.
Michael Ricafort, chief economist a Rizal Commercial Banking Corp., attributed the mixed results to investor positioning ahead of a Monetary Board’s policy meeting, as well as improving geopolitical sentiment following the US and Iran ceasefire framework that could end more than three months of war.
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As it is, all 15 economists surveyed by the Inquirer expect the Monetary Board to tighten monetary policy at its June 18 meeting, with 12 forecasting a 25-basis-point hike and three expecting a larger 50-basis-point increase.
On yields, the 91-day and 364-day papers eased to 5.171 percent from 5.188 percent and to 6.124 percent from 6.267 percent, respectively, while the 182-day yield edged up to 5.694 percent from 5.679 percent.
The 35-day CMB yielded 4.611 percent on average, while the 63-day tenor yielded 4.942 percent.
For June, the final month of the second quarter, the BTr is targeting to raise up to P128 billion in T-bills. /pai INQ
