The peso exchange rate stands at P44.69 to the US dollar, the closing rate last Friday at the Philippine Dealing & Exchange Corp. (PDEx). The weighted average rate stands at P44.77.

T-bill yields mixed; 91-day up at 3.946%

Treasury bill yields were mixed at auction yesterday, with yields of shorter-dated paper rising slightly, while that of 364-day paper fell amid prospects of tame inflation. Total bids reached P29.83 billion for the P8 billion offering, with P20.46 billion tendered for the one-year paper due to strong interest from banks. Yields on the 364-day bill eased to 4.490%, from 4.562% in the Aug. 23 auction, while yields on the 91-day and 182-day paper rose a marginal one basis point and two basis points, respectively. The three-month (91-day) paper fetched a yield of 3.946% at Monday's auction, compared to 3.936% previously, while the 182-day bill yielded 4.322% from 4.302%. The central bank has forecast benign inflation this year and a majority of economists believe the central bank will keep interest rates at record lows until early next year. "They (banks) are already locking in long-term because inflation is expected to be benign," National Treasurer Roberto Tan told reporters after the auction.

B.S.P. bought $793 M F.X. in August

The Bangko Sentral ng Pilipinas (BSP) purchased $793 million of foreign exchange (FX) last month, double of what was bought in July at $401 million. The BSP buys FX, mostly US dollar, to jack up reserves and to smooth exchange rate volatility. In the same report, the BSP also sold FX worth $453 million in August, but it did not conduct any FX sales in July. Ending August, the peso at P45.79 vis-á-vis the US dollar appreciated by 4.4 percent compared with the same period in 2009 at P47.89: $1. The Philippines dollar reserves totaled $49 billion as of July. Central bank preliminary report show the reserves as of the end of August was at the level of $49.32 billion while the implied balance of payments (BOP) position in the same month was a surplus $245.78 million, or an eighth-month BOP surplus of $3.571 billion. (LCC)

Probe on fake bills from A.T.M. sought

Concerned about the snowballing cases of automated teller machines (ATMs) dispensing fake P1,000 bills, several lawmakers yesterday called for an inquiry into involvement of some bank officials and their representatives in the proliferation of the fake money. Leading the call was Iloilo Rep. Janette Garin, who pressed on the Bangko Sentral ng Pilipinas (BSP) and the National Bureau of Investigation (NBI) to look into reports that a PSBank ATM in Cainta, Rizal was dispensing fake P1,000 bills. (CML)