T-bill, bond rates may fall as BSP turns dovish

THE RATES of Treasury bills (T-bill) and bonds (T-bond) could end mostly lower this week amid dovish signals from the Bangko Sentral ng Pilipinas (BSP).

- By Aaron Michael C. Sy

The rates could follow the mixed week-on-week movements in the secondary market after BSP Governor Eli M. Remolona, Jr. signaled further rate cuts this year after inflation slowed to 1.4% in April, Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said in a Viber message.

The Bureau of the Treasury (BTr) will auction off P25 billion in T-bills on Tuesday — P8 billion each in 91and 182-day debt and P9 billion in 364-day securities.

On Wednesday, the government will sell P40 billion through two reissued T-bonds — P15 billion in seven-year notes with a remaining life of two years and 11 months and P25 billion in 20-year debt with a remaining life of 19 years and 13 days.

Auction dates were moved a day later to give way to the 2025 midterm elections on May 12.