Philippines T-bill rates decline after BSP's dovish signals

Yields on short-term Treasury bills in the Philippines fell during a recent auction, following signals from Bangko Sentral ng Pilipinas Governor Eli Remolona suggesting possible interest rate cuts. The government raised P30.8 billion, exceeding its P22 billion target. The auction attracted P118.9 billion in bids, indicating strong demand. The average yield for the 91-day T-bill dropped to 5.118 percent, while the 182-day and 364-day T-bills also saw decreases in their average rates. The Marcos administration aims to borrow P2.55 trillion this year to address a projected budget deficit of P1.54 trillion, which is 5.3 percent of the country's GDP.