The Bureau of the Treasury (BTr) raised P20 billion from Treasury bills through its auction on Monday as rates declined across the board amid prospects of falling commodity prices.

The BTr said the total bids reached P77.9 billion or 3.9 times bigger than the awarded full program of P20 billion.

The BTr awarded P6.5 billion for 91-day papers which fetched an average rate of 5.743 percent, down from 5.840 percent recorded in the previous auction on 9 September.

The Treasury awarded another P6.5 billion for 182-day papers as the average rate fell to 5.940 percent from 5.980 percent.

Last, the BTr awarded P7 billion for 364-day papers which fetched an average rate of 5.973 percent, down from 6.029 percent.

In the secondary market, recent rates for the short-term debt papers mirrored the downtrend after the easing of the policy rate of the Bangko Sentral ng Pilipinas last month due to projected lower inflation rates until next year.

Trending down

Data from the Philippine Dealing System Holdings Corporation already showed lower rates, with 5.8616 percent for the three-month papers, 5.9899 percent for the six-month papers and 6.0118 percent for the one-year papers last Friday.

Rizal Commercial Banking Corporation chief economist Michael Ricafort said the central bank will likely further reduce its existing 6.25 percent rate in the fourth quarter as its tight monetary policy has reduced inflation rates.

Inflation last month dropped to 3.3 percent from 4.4 percent in July based on data from the Philippine Statistics Authority. Economists said the BSP target of 2 to 4 percent was breached temporarily due to the effects of super typhoon “Carina.”

“Global crude oil prices have been among nine-month lows and also among 14.5-month lows recently that could help ease overall inflation,” Ricafort said.

Investors anticipate fewer risks of losses as the central bank estimates overall inflation to settle at 3.3 percent this year and 2.9 percent in 2025.