The Bureau of the Treasury (BTr) raised its Treasury bills (T-bills) award to P28.6 billion in its auction on Monday as rates declined across the board in anticipation of lower policy rates from the Bangko Sentral ng Pilipinas.

BTr auctioned 91-day, 182-day, and 364-day T-bills which drew total bids amounting to P93.3 billion. This was 3.9 times higher than the initial total offer worth P25 billion.

The Treasury awarded P8 billion for the three-month debt papers which fetched an average rate of 5.451 percent, down from the 5.42 percent recorded last 2 June.

BTr awarded another P8 billion for the six-month papers which had an average rate of 5.524 percent, slipping from 5.565 percent seen in the previous auction.

Lastly, BTr awarded P12.6 billion for the one-year papers which increased from its initial plan of P9 billion. These debt papers fetched an average rate of 5.656 percent, decreasing from 5.680 percent.

“Some investors lock in still relatively higher yields before they go down in the coming months,” Rizal Commercial Banking Corp. chief economist Michael Ricafort said.

Last month, Bangko Sentral ng Pilipinas Governor Eli Remolona Jr. said that its Monetary Board is considering two more cuts to its policy rate for the remainder of the year, following the country’s lower inflation rates.

He said the Monetary Board is looking at a reduction of 25 basis points for each cut, which will bring the policy rate down to 5 percent from the current 5.5 percent.