Treasury bill rates fell sharply again yesterday as investors continued to swarm the auction of government securities on lower inflation expectations and a possible reduction in the central bank?s key policy rates.

The 91-day T-bills fetched 4.294 percent, or 70.6 basis points lower than 5 percent on Jan. 12. Tenders for the P1- billion offering reached P2.78 billion.

The yield of the 182-day debt paper fell 68.3 basis points to 4.565 percent from 5.248 percent as bids for the P2.5- billion offering amounted to P7.18 billion.

The 364-day T-bills averaged 4.761 percent, or 61.2 basis points lower than 5.373 percent on Jan. 12. Bids for the P3.5-billion offering amounted to P9.36 billion.

Tenders for yesterday?s P7- billion offering reached P19.32 billion.

National Treasurer Roberto Tan told reporters that investors crowded the auction of government securities due to the benign inflation outlook for the year.

?This is in an offshoot of the bond exchange results and the inflationary expectation. So there are expectations of lower inflation rate and short-term rates,? said Tan. Lawrence Agcaoili