T-bill, bond rates may end mixed

RATES of the Treasury bills (T-bills) and Treasury bonds (T-bonds) on offer this week could track the mixed yield move-ments at the secondary market amid expectations of a retail Treasury bond (RTB) offering next month.

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The Bureau of the Treasury (BTr) will auction off P25 billion in T-bills on Monday, or P7 billion in 91-day securities, P8.5 billion in 182-day debt, and P9.5 billion in 364-day papers.

On Tuesday, the government will offer P20 billion in reissued seven-year T-bonds with a remaining life of two years and nine months.

T-bill rates could mostly ease this week and track the week-on-week movements seen at the secondary market, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The reissued seven-year bonds could likewise fetch rates at par with secondary market levels amid reports of a possible RTB issuance in August that could increase the supply of debt papers, Mr. Ricafort added.

The T-bonds to be offered this week could be "well received" and fetch rates ranging from 5.775% to 5.825% as the market awaits further information on the RTB offering, a trader said in an email.