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T-bill rates drop after easing signals from BSP
Treasury bill rates have decreased following dovish signals from the Bangko Sentral ng Pilipinas (BSP) about potential interest rate cuts.
BSP Governor Eli M. Remolona, Jr. indicated that up to 75 basis points of rate cuts are possible this year.
Analysts attribute these signals to benign inflation in April, which reached 1.4%, the slowest in over five years, and a first-quarter economic growth of 5.4%.
The Bureau of the Treasury (BTr) successfully borrowed P25 billion via T-bills, with total bids reaching P70.345 billion, nearly thrice the offering.
The average yield for the 91-day T-bill dropped by 2.7 basis points to 5.546%, while the 182-day T-bill's average rate decreased by 1.7 basis points to 5.65%.
These rate reductions are expected to continue, potentially matching future US Federal Reserve rate cuts.
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The Bureau of the Treasury (BTr) successfully awarded all its offered Treasury bills (T-bills), accepting PHP25 billion in total.
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Financial institutions anticipate the Bangko Sentral ng Pilipinas (BSP) will cut interest rates further this year, with potential reductions possible as early as next month.
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