Manila: The average rate of Philippine treasury bills (T-bills) declined Monday, with all three tenors upsized from the original PHP9-billion offer due to strong demand. Data released by the Bureau of the Treasury showed that rate of the 91-day paper averaged at 4.7311 percent from 4.755 percent during the Jan. 5 auction. The awarded debt paper reached PHP12.6 billion and tenders were nearly four times the original offering at PHP35.43 billion.

According to Philippine News Agency, the average rate of the six-month paper went down to 4.850 percent from 4.895 percent last week. Total bids were also more than four times at PHP43.628 billion, while the auction committee awarded PHP12.6 billion. The rate of the one-year paper slipped to 4.916 percent from last week's 4.937 percent. Bids reached PHP30.715, also over four times the original offer. The auction committee accepted PHP12.6 billion.

In a report, Rizal Commercial Banking Corporation chief economist Michael Ricafort partly traced the development to expectations for another 25 basis points reduction in the Bangko Sentral ng Pilipinas (BSP) key rates next month and possible decline in banks' reserve requirement ratio this year. "On external factors, any potential aggressive [United States] Fed (Federal Reserve) rate cuts by the next Fed Chair/other Fed officials, as any future Fed rate cut/s could be matched locally to maintain healthy interest rate differentials that help stabilize the peso exchange rate," he said.