Investors shun 364-day T-bills ahead of BSP action on policy yield

Investors steered clear of one-year Treasury bills during the weekly auction Monday, on expectations that the Bangko Sentral ng Pilipinas will soon cut interest rates.   Funds are going into shorter-term T-bills ahead of expectations of a policy move by the BSP, said National Treasurer Roberto Tan.   The market expects the policy rate cut to happen during the first quarter.   Investors showed their preference for debt papers maturing in less than a year by posting higher bid rates for the one-year T-bills.   Sold during Monday's auction was P6.6 billion worth of T-bills, compared with P9 billion on program.   The government auction panel awarded only P1.16 billion of the 364-day T-bills, compared with the P3.5 billion on program, with the average rate up nearly 100 basis points to 2.077 percent from 1.079 percent.   The average rate would have advanced to 2.680 percent had government called on the P2.910 billion worth of bids the 364-day paper.   The average rate for 182-day T-bills eased down to 1.824 percent, or 0.600 basis points from 1.830 percent. Investors tendered. Total tenders reached P4.150 billion, compared with P3 billion on program.   The 91-day T-bills fetched an average rate of 1.428 percent, down 12.8 basis points from 1.566 percent, with total tenders reaching P6.88 billion.   The amount on program for the 91-day T-bills is P2.5 billion.  — VS, GMA News