Treasury bill (T-bill) rates and Treasury bonds (T-bonds) offer this The week could end mixed as players await the release of Philippine GDPUCT (GDP) growth data that may affect Monetary easing approach of the central bank.
The Bureau of the Treasury (BTR) on Monday will auction P27 billion in T-bills, or P9 billion each of 91-, 182- and 364-day papers.
On Tuesday, the government is aiming to raise up to P50 billion from a dual-tenure T-bond offering, as it can borrow between P20 billion and P30 billion each through reissued seven-year papers, which have a remaining term of two years and six months, and through a reissued 20-year debt.Main life of 18 years and three months.
T-bill and T-bond rates may follow the mixed week-to-week movements seen in the secondary market as players await the release of the fourth quarter and full-year 2025 GDP growth data and how it will impact the next policy move of the Bangko Sentral ng Pilipinas (BSP), said Michael L., chief economist of Rizal Commercial Banking Corp. Ricafort said in a Viber message.
A trader also said in an e-mail that secondary market yields were range-bound on Friday, in line with players' positions before the release of GDP data.
In the secondary market on Friday, short-term rates fell amid global and domestic uncertainty, while longer-term rates rose, with the market awaiting a fresh lead that could dictate the direction of short-term yields.
Based on PHP Bloomberg Valuation Service reference rate data published on January 23, yields on 91-, 182- and 364-day T-bills declined 3.11 basis points (bps), 4.52 bps and 5.16 bps week over week to end at 4.7664%, 4.8359% and 4.8912%, respectively. On the website of the Philippine Dealing System.
For its part, the yield on seven-year bonds rose 4.45 bps per week to close at 5.9368%, while three-year loans, the term closest to the remaining life of the papers offered on Tuesday, rose 2.65 bps to 5.4974%.
Meanwhile, the 20-year note rose 1.21 bps to 6.4996%.
The government will release fourth-quarter and full-year Philippine GDP on Thursday (January 29).
Based on this, the economy is likely to grow by 4.2% in the fourth quarter businessworld Survey of 18 economists and analysts. This will be faster than the 4% growth in the third quarter, but slower than the 5.3% expansion over the same period in 2024.
This will take the full year growth rate to 4.8%, which is below the government's target of 5.5%-6.5%. That would be slower than the 5.7% expansion in 2024 and the weakest since the 9.5% contraction posted in 2020.
On Friday, BSP Governor Eli M. Remolona, ââJr. said another cut remains uncertain, adding that price stability is his primary concern.
He said when the monetary board meets on February 19 they will consider the latest gross domestic product (GDP) data, but weaker-than-expected growth would not automatically guarantee more easing.
The BSP cut benchmark interest rates by 25-bp for the fifth consecutive time on December 11, bringing the policy rate to a three-year low of 4.5%. This has reduced borrowing costs by a total of 200 bps since the start of the rate cut cycle in August 2024.
Mr Remolona had earlier said he may impose one last cut to help support domestic demand as governance concerns due to a corruption scandal involving state infrastructure projects have pulled both public and private investment, pushing Philippine GDP growth to a four-year low of 4% in the third quarter of 2025.
Analysts have said the central bank may ease further to help prop up the economy as inflation remains under control.
Last week, BTR raised P37.8 billion through an auction of T-bills, more than the P27-billion plan as the offer was almost five times oversubscribed, bringing total tenders to P126.59 billion. The auction committee doubled the acceptance of non-competitive bids for all tenants to P7.2 billion each.
Broken down, the government awarded P12.6 billion in 91-day T-bills, more than the P9-billion plan, as demand for the term reached P35.65 billion. The three-month paper fetched an average rate of 4.723%, 0.8 bp lower than the yield seen in the previous auction. The approved rates ranged from 4.68% to 4.743%.
The Treasury borrowed P12.6 billion through a 182-day loan compared to the P9-billion program as the tenders reached P45.85 billion. The average rate on six-month T-bills was 4.817%, down 3.3 bps from the previous week. The yield on tenders awarded ranged from 4.8% to 4.835%.
Ultimately, BTR raised P12.6 billion from 364-day securities, which is more than the P9-billion plan, as bids totaled P45.09 billion. The average yield on one-year paper was down 2.8 bps at 4.888%. Approved rates ranged from 4.875% to 4.893%.
Meanwhile, the seven-year T-bonds offered on Tuesday were last auctioned on Jan. 6, where the government raised P20 billion as planned at an average rate of 5.467%, above the 3.75% coupon rate.
For their part, the 20-year notes were last sold on Nov. 18, where the government raised P15 billion as per the program at an average rate of 6.424%, below the 6.875% coupon rate.
The Treasury wants to raise P180 billion from the domestic market this month, or P110 billion through T-bills and P70 billion through T-bonds.
The government borrows from local and foreign sources to finance its budget deficit, which this year stands at P1.647 trillion, or 5.3% of GDP. â Aaron Michael C. Cy