T-bill, bond rates may rise on BSP's policy rate hike signals

RATES on Treasury bills (T-bills) and Treasury bonds (T-bonds) may rise this week as markets reassess the Bangko Sentral ng Pilipinas' (BSP) policy outlook following signals that the central bank could tighten monetary policy if global oil prices surge further.

- Aaron Michael C. Sy Reporter

Analysts said yields in the primary market could follow the upward trend seen in the secondary market last week as rising geopolitical tensions pushed crude oil prices higher.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the prolonged conflict in the Middle East has lifted global oil prices, raising the risk of faster inflation and potentially affecting the BSP's monetary policy stance.

The Bureau of the Treasury (BTr) will auction P27 billion worth of T-bills on Monday, offering P9 billion each in 91-, 182-and 364-day debt.

On Tuesday, it will also offer reissued 10-year T-bonds with a remaining life of seven years and five months, targeting to raise P20 billion to P30 billion.

Data from PHP Bloomberg Valuation Service Reference Rates posted on the Philippine Dealing System's website showed yields on government securities rising across most tenors late last week.

Short-term Treasury bill rates moved higher, while yields on mediumand long-term bonds posted sharper increases.