T-bill, bond rates may end mixed before BSP meeting

RATES of the Treasury bills (T-bills) and Treasury bonds (T-bonds) on offer this week could end mixed before an expected cut by the Bangko Sentral ng Pilipinas (BSP) at its meeting on Thursday.

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The Bureau of the Treasury (BTr) will auction off P25 billion in T-bills on Monday, or P8 billion each in 91and 182-day papers and P9 billion in 364-day papers.

On Tuesday, the government will offer P30 billion in reissued 10-year T-bonds with a remaining life of nine years and 10 months.

This week's T-bill and T-bond auction rates could track the mixed movements at the secondary market, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

At the secondary market on Friday, yields on the 91and 182-day T-bills eased by 0.09 basis point (bps) and 3.97 bps week on week to end at 5.4404% and 5.57%, respectively, based on PHP Bloomberg Valuation Service Reference Rates data as of June 13 published on the Philippine Dealing System's website. Meanwhile, the 364-day tenor went up by 1.02 bps to end at 5.6916%.

For its part, the rate of the 10-year bond rose by 5.06 bps week on week to close at 6.3503%.

Yields on shorter benchmark tenors went down on expectations that the Bangko Sentral ng Pilipinas (BSP) will reduce borrowing costs this week, Mr. Ricafort said.

Meanwhile, rates of longer bonds rose due to concerns over the conflict in the Middle East as Israel and Iran exchanged attacks over the weekend, he added.