T-bill, bond rates may drop on BSP easing hopes

RATES of the Treasury bills (T-bills) and Treasury bonds (T-bonds) on offer this week could decline as weak gross domestic product (GDP) data increased expectations of further policy easing by the central bank.

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

On Tuesday, the government will offer P30 billion in reissued seven-year T-bonds with a remaining life of four years and 11 months.

T-bill and bond rates could mirror the week-on-week drop in comparable secondary market yields as weaker-than-expected fourth-quarter and full-year 2025 GDP growth heightened the odds of a sixth straight cut from the Bangko Sentral ng Pilipinas (BSP) this month, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

"Expect bullish momentum to translate into [this] week as players price in a poor (economic) outlook," a trader said in an email.