Manila: Hopes for additional reduction in the Bangko Sentral ng Pilipinas' (BSP) key rates by next month have resulted in another drop in the Treasury bills (T-bill) rates Monday. The Bureau of the Treasury (BTr) upsized the offering for each tenor to PHP12.6 billion from PHP9 billion as announced on Jan. 15 and made full award across-the-board.

According to Philippines News Agency, results of the BTr auction on Monday showed the average rate of the 91-day paper eased to 4.723 percent from 4.731 percent on Jan. 12, with tenders reaching PHP35.65 billion, nearly four times the offering. The average rate of the 182-day paper went down to 4.817 percent from 4.850 percent last week, with tenders for this tenor reaching PHP43.63 billion. Similarly, the rate of the 364-day T-bill slipped to 4.888 percent from 4.916 percent previously, and bids reached PHP34.04 billion.

Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort attributed the lower rates to strong demand for the debt papers. The volume of bids, he said, "could indicate strong market appetite/bids; to lock in T-bill yields before a possible BSP rate cut in February 2026."