T-bill rates drop; high liquidity, BSP cut expected

On Monday, Philippine treasury bill rates declined further due to strong liquidity and market expectations of another interest rate cut by the Bangko Sentral ng Pilipinas amid concerns over economic slowdown caused by the coronavirus.

The Bureau of the Treasury successfully raised P30 billion via T-bills, with each 91-day paper fetching an average rate of 3.003%, down from 3.072% in the previous auction.

Rates for both 182-day and 364-day papers also decreased to 3.365% and 3.787% respectively, compared to their rates last week.

Deputy Treasurer Erwin Sta. Ana noted that high domestic liquidity and hopes of another rate reduction by the BSP are boosting investor sentiment.

The BTr opened an over-the-counter window for GOCCs to bid on one-year papers due to strong demand, with total bids amounting to PHP28.21 billion for the 364-day paper alone.