T-bill, bond rates may be mixed on easing hopes

RATES of the Treasury bills (T-bills) and Treasury bonds (T-bonds) on offer this week could end mixed as the market prices in expectations of further monetary easing from both the Bangko Sentral ng Pilipinas (BSP) and the US Federal Reserve this month.

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The Bureau of the Treasury (BTr) will auction off P22 billion in T-bills on Monday or P7 billion in 91-day papers and P7.5 billion each in 182-day and 364-day debt.

On Tuesday, the government will offer P35 billion in dual-tenor T-bonds, or P20 billion in reissued seven-year papers with a remaining life of two years and four months, and P15 billion in reissued 10-year debt with a remaining life of nine years and four months.

T-bill yields could be mixed to track secondary market movements as both the BSP and the Fed are expected to deliver rate cuts at their meetings this month, Rizal Commercial Banking Corp. Chief Economist Michael L, Ricafort said in a Viber message.

The bonds on offer on Tuesday could also fetch average yields close to those at the secondary market, he said.