T-bill rates may drop on BSP cut

RATES of the Treasury bills (T-bills) on offer this week could end slightly lower after the Bangko Sentral ng Pilipinas (BSP) lowered borrowing costs again and with the US Federal Reserve’s policy path still uncertain. Th

e Bureau of the Treasury (BTr) will auction off P20 billion in T-bills on Monday, or P6 billion in 91-day securities and P7 billion each in 182- and 364-day papers. T-

bill rates could be little changed or slightly lower to track the marginal decline seen in most short-term yields at the secondary market last week after the BSP’s latest easing move, Rizal Commercial Banking Corp. Chie

f Economist Michael L. Rica

fort said in a Viber message. He s

aid the BSP chief’s “unexpected” hawkish signals immediately after Thursday’s policy decision initially caused local bond yields to rise, but his “more dovish” comments on Friday caused rates to close the week mostly sideways. On Friday, the r

ates of the 91- and 182-day T-bills declined by 0.49 basis point (bp) and 0.01 bp week on week to 4.863% and 4.9989%, respectively, at the secondary market, based on PHP Bloomberg Valuation Service Reference Rates data as of Dec. 12 published on the Philippine Dealing System’s website. Meanwhile, the 364

-day T-bill inched up by 0.63 bp to yield 5.0583%. The Monetary Board

last week cut benchmark interest rates by 25 bps for a fifth consecutive meeting to bring the policy rate to 4.5%, the lowest level in more than three years, as expected by 17 out of 18 analysts in a BusinessWorld poll. The central bank h

as now lowered borrowing costs by 200 bps since it began its easing cycle in August 2024. BSP Governor Eli M