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P100 NCR wage hike petition dismissed

PHILIPPINE STAR/ MICHAEL VARCAS

THE WAGE BOARD has dismissed the petition of two labor groups seeking a P100 across-the-board wage increase for private sector workers in the National Capital Region (NCR).

In a resolution dated May 4, the Regional Tripartite Wages and Productivity Board (RTWPB) – NCR said it has no jurisdiction to act on the petition filed by labor group Unyon ng mga Manggagawa sa Agrikultura (UMA) and progressive party-list Anakpawis for a P100 “emergency wage relief” across-the-board increase in minimum wages.

“The grant of an across-the-board minimum wage increase does not fall within the jurisdiction of the (RTWPB). It is limited to granting regional wage increases to employees earning the statutory minimum wage rates based on the standards/criteria established by law,” the wage board said in the resolution.

UMA and Anakpawis in April filed the wage hike petition, citing the rising inflation rate and higher prices of basic goods, as well as elevated unemployment and underemployment rates amid the pandemic.

The wage board in late March dismissed a similar petition filed by Defend Job Philippines.

“We are disheartened [by the] dismissal of Defend Job Philippines’ P100 emergency daily wage subsidy for technical reasons,” UMA told BusinessWorld in a Facebook messenger chat. “It only shows their bias against labor and more in favor of capital as they do not or don’t want to see the real situation of workers on the ground.”

Citing Republic Act No. 6727 or the Wage Rationalization Act of 1989, the board said it “continuously reviews and assesses the socioeconomic conditions in NCR taking into consideration the impact of the prolonged quarantine and health protocols, state of business activities including closures and retrenchments, regional employment situation and supply and price of basic commodities, among other caused by the COVID-19 pandemic.” — K.A.T. Atienza

D&L looks to complete Batangas plant expansion

D&L Industries, Inc. remains committed in its efforts to complete its First Industrial Township (FIT) expansion plan in Batangas despite experiencing delays due to the new round of pandemic lockdown.

“We remain committed to this expansion which is deemed to come at an opportune time as this will mainly cater to D&L’s growing export business in the food and oleochemical segment,” Alvin D. Lao, president and chief executive officer of D&L, said during the company’s stockholders’ meeting on Monday.

D&L’s key strategies include ramping up its export business to complement domestic operations. The company said the plant will be instrumental in its future growth as it develops more coconut-based products and as it dips into new international markets.

The company is still assessing the completion date of the plant expansion, after experiencing equipment and supply chain shipping delays due to the new round of pandemic lockdowns in the country.

It will give further information on the plant’s production capacity and other details in the coming months.

Despite this, D&L is confident it can still meet demands despite the hiccup in construction.

“Even if the construction is delayed, mukhang (it looks like) our existing facilities are able to cater to our current requirements and so from an operational perspective, the delay is not going to be that significant for us,” Mr. Lao said in a press briefing.

The company’s stockholders also approved of its plan to issue peso-denominated fixed-rate bonds worth P3 billion, with an oversubscription offer of up to P2 billion.

D&L is aiming to issue the bonds in the first or second week of September, subject to regulatory approvals. Proceeds from the offer will be used to help finance constructions in D&L’s Batangas plant.

The listed manufacturing company’s net attributable income rose by 35% to P694.9 million in the January-to-March period from P514.56 million last year.

“Assuming that first quarter 2021 income holds steady in the next couple of quarters, the company is set to reach its net income level at least in 2019,” Mr. Lao said, adding that the company’s balance sheet remains in a good position to withstand external shocks.

On Monday, shares of D&L at the stock exchange closed higher by 1.39% or 11 centavos at P8.05 each. — Keren Concepcion G. Valmonte

Lopez Holdings swings to P2.6-B loss on units’ weak showing

LOPEZ Holdings Corp. told the exchange on Monday that it incurred a P2.63-billion net loss attributable to equity holders of the parent in 2020, a turnaround from the P5.32 billion generated in profits from the previous year.

“The results were due to the weaker performance of operating units under investee First Philippine Holdings Corp. (FPH), a consequence of the economic slowdown due to COVID-19 quarantine measures, as well as, the net loss posted by investee ABS-CBN Corp.,” Lopez Holdings said in a disclosure.

FPH recorded a 22% drop in net attributable income to P9.9 billion from P12.58 billion in 2019 due to a decline in its revenues.

First Philippine Holdings’ recurring income for the year also dipped by 21% to P9.4 billion due to weaker operating results in its energy, real estate, and construction and energy service segments as the government imposed pandemic restrictions.

FPH posted a 20% topline fall to P107.3 billion.

Meanwhile, ABS-CBN is still reeling from the rejection of its broadcasting franchise last year.

The media giant incurred a P7.25-billion net loss attributable to equity holders of the parent company for the period ending September 2020. ABS-CBN has yet to release its annual report.

Shares of Lopez Holdings closed unchanged at P3.30 apiece on Monday. — Keren Concepcion G. Valmonte

PHL AirAsia, GCash partner to ease payments experience for travelers

FREEPIK.COM

LOW-COST carrier Philippines AirAsia, Inc. and GCash, the mobile wallet arm of Globe Telecom, Inc., anticipate air travel demand to jump once quarantine restrictions are relaxed further.

They said customers now prefer cashless transactions for hygiene purposes.

“This is just one of the ways we are making air travel more accessible, and I’m sure this partnership will bring game-changing initiatives in the near future,” said Martha M. Sazon, president and chief executive officer of Mynt (Globe Fintech Innovations, Inc.), the fintech arm of Globe and operator of mobile wallet GCash, at a virtual media event on Monday.

Philippines AirAsia Chief Executive Officer Ricardo P. Isla said: “All of our efforts are driven by a very strong recovery.”

“Our partnership with GCash, the country’s leading e-wallet, empowers our guests with flexible cashless options as we all gear up to fly again to our favorite leisure destinations,” he added.

With the partnership, Philippines AirAsia customers can now secure mobile payments online through the GCash app, via the AirAsia’s “super app” or by logging on to airasia.com.

On the airline’s website, customers can select their flights and add-ons and proceed to the payment page where they can pay via GCash on the “Wallet” tab.

GCash can also be used to pay for AirAsia shop purchases such as travel essentials.

AirAsia Group Berhad has said it expects domestic operations in the Philippines to be below 25% of pre-pandemic levels until at least September while the population awaits widespread vaccination against the coronavirus disease 2019 (COVID-19).

Month-on-month operations in the Philippines has improved with a 57% increase in passengers in March, although this was lower than the 85% increase seen by AirAsia Malaysia.

Philippines AirAsia is also eyeing travel incentives for fully vaccinated individuals to help stir up demand. — Arjay L. Balinbin

What firms should consider before bringing workers back to the office

BRAM NAUS /UNSPLASH

WHEN IT COMES to whether employees should return to the office post-pandemic, there is no one-size-fits-all answer.

Each company should consider the company’s work culture as well as the nature of each individual’s work — including their personal circumstances, said Tracy G. Ignacio, chief operating officer of KMC Solutions, in a recent webinar organized by BusinessWorld.

“The answer here is a hybrid setup, where there are days you are on Zoom, and days where you are at the office with the purpose of collaboration,” Ms. Ignacio said.

The flexible workspace provider has a “Home-Hub-HQ” workplace strategy that gives employees and clients the choice to work from home (WFH), the office, or the KMC facility nearest them. “It’s now time to arm ourselves with the right tools to get out there and start living already,” she said, referring to the 14 months that the Philippines has spent under lockdown of varying degrees.

Meanwhile BusinessWorld columnist Bienvenido “Nonoy” S. Oplas, Jr., founder and president of free-market think tank Minimal Government Thinkers, supported returning to the office and the lifting quarantine restrictions.

“For those who are confident enough because they have attained natural herd immunity (especially the young), or have been vaccinated, or have had effective prophylaxis and early treatment drugs, government should not impose more mobility restrictions,” he said, citing the negative impact of restrictions on the economy.

Through an informal survey of nine firms, Mr. Oplas found arguments in favor and against working from home. Among the WFH advantages mentioned were shorter commutes, personal safety, and minimal utility expenses. The loss of human contact and emotional stress, meanwhile, were indicated as some of its pitfalls.

Given that digital exhaustion is a reality for a lot of workers at this point, leaders have to also lead with empathy and ensure that meaningful collaboration is still taking place despite the changes.

“Working from home has turned from a luxury to a necessity,” said Alexander B. Cabrera, chairman and senior partner of PricewaterhouseCoopers (PwC) Philippines, adding that mental wellness is the most critical issue in the work-from-home setup. “There is a disconnect in terms of social interaction.”

Like KMC’s Ms. Ignacio, Mr. Cabrera suggested a hybrid work setup moving forward, as well as addressing digital exhaustion by enacting policies that respect people’s time, which includes being mindful of regular breaks.

Prior to the pandemic, Mondelez Philippines was already allowing employees to work from home one to two days a week. The multinational confectionery, beverage, and snack food company has a “flexible working pledge” that guides people on how to work in a flexible environment and remain productive.

“The type of support that’s provided to employees is a leadership decision,” said Aileen S. Aumentado, people lead of Mondelez Philippines. “There are many ways offices can support employees, whether it’s transportation allowance that can be offset as an additional cost for [home internet] connectivity, or allowing office chairs to be loaned to employees [for their home offices].”

Remote work arrangements should not stop companies from delivering results, Ms. Aumentado added. “Leaders should have the right mindset in terms of engaging people to collaborate and work together.”

Everyone is learning something new every day in this pandemic, according to PwC’s Mr. Cabrera. “Post-pandemic, it’s going to be a network of working from anywhere, supported by digital transformation… Common working spaces will also be necessary to develop company culture and stronger relationships,” he said. — Patricia B. Mirasol

New show looks at creativity’s role in hard times

RECREATE show host Daphne Oseña-Paez
RECREATE show host Daphne Oseña-Paez

THE BITUIN family of Betis, Pampanga comes from a long line of furniture-makers, but they have had to change with the times. Despite the uncertainties brought about by the ongoing coronavirus disease 2019 (COVID-19) pandemic, the family transformed their business into Hardin ng Bituin, a plant supply shop and bed and breakfast.

The story on how they adapted their old workspace is featured in the first episode of One News Channel’s new lifestyle show, Recreate.

“They converted parts of their old wood kiln into a bed-and-breakfast. They reused old factory equipment and turned them into furniture,” Recreate show host Daphne Oseña-Paez told BusinessWorld in an e-mail.

“It was fascinating to see that out of chaos and uncertainties, one can find ways to be productive, orderly, and inspired. Their ideas were also very practical and helpful,” she added.

In 2018, Ms. Oseña-Paez hosted a magazine show called Create which ran for two seasons. It featured Filipino artists in all fields and focused on the subjects’ creative processes.

For this new show, Recreate, which premiered on May 22, its treatment was tweaked to reflect the current conditions of local creatives and culture. It will feature artists from different fields, heritage structures, and cultural spaces. The show focuses on how creatives can persevere in their work despite the challenging circumstances brought on by the global health crisis.

“After one year break during the pandemic, we realized that we all have gone through a process of change. This made me curious about how others may have used their creativity during this time,” Ms. Oseña-Paez said.

Its second episode, which aired on June 5, highlighted the restoration of the Metropolitan Theater in Manila which built was in 1931 and a chat with National Commission for Culture and the Arts (NCCA) Chairman Arsenio “Nick” Lizaso.

“The story of the Met is like a metaphor for our own transformation and rebirth during the pandemic. The Met has undergone an ambitious physical restoration. But without a live show and people, despite its beauty, it is just an empty shell,” Ms. Oseña-Paez said, adding that this is similar to individuals who have undergone change in isolation.

“Through the process we may have improved ourselves, but these changes will only make an impact when we are able to interact with our communities again,” she added.

Succeeding episodes will cover a multi-awarded architect known for designing luxurious homes in upscale communities in the Philippines, a director who mounted a hit web series shot purely from the actors’ homes; and an environmental planner and landscape architect who promotes parks and open spaces.

“This is a period of transition. Cities and institutions are being redefined. In all aspects of these changes, creativity lies in the heart of problem solving,” Ms. Oseña-Paez said. “We hope to be able to tell stories of creative thinkers and their impact in their communities and cities.”

Recreate airs every Saturday at 6:30 p.m. exclusively on One News, available on Cignal TV Ch. 250 HD and Ch. 8 SD. It’s also available to view for free on the Cignal Play app. — Michelle Anne P. Soliman

NOW Corp. says court ruling on telco affiliate’s petition ‘not yet final’

NOW-CORP.COM

NOW Corp. said on Monday the appellate court’s decision on the petition of its affiliate regarding a government circular on new entrants seeking to become major telecommunications industry participants is still subject to remedies.

“NOW Corp. has been advised that NOW Telecom (Co., Inc.) has yet to receive the alleged Court of Appeals decision. Thus, it is still subject to NOW Telecom’s legal remedies and therefore, not yet final,” the listed company told the stock exchange.

“Further, the legal issues raised in the case are still covered by the sub judice rule which restricts comments and disclosures on legal issues in pending judicial proceedings,” it added.

To recall, Now Telecom filed in 2018 a petition for certiorari seeking to stop the National Telecommunications Communication’s (NTC) from implementing certain provisions of the terms of reference in the third telco selection process.

Now Telecom challenged the NTC requirement of a P700-million “participation security,” a P14-billion to P24-billion performance security, and a P10-million non-refundable appeal fee. A Manila court denied the petition.

Now Corp. also clarified on Monday that it is not a party to the Court of Appeals case.

“As it is not a party to said case, NOW Corp. has no knowledge of the details surrounding the alleged Court of Appeals decision,” it added. — Arjay L. Balinbin

How to unite cat and bird lovers? Build a catio

REUTERS

BRENDA THOMPSON’S YARD in northeastern Los Angeles is an avian paradise. Hummingbirds, goldfinches, juncos, and crows, among other bird varieties, splash in her fountain, guzzling sugar-water and nibbling the seeds she sets out. Now and then a neighborhood cat strolls along, and tries to go after and grab at the birds. Luckily, Thompson’s own cats, Cooper and Fizz, have no blood on their paws. That’s largely because Thompson has built them a $10,000 “catio” — a cat patio.

The wood-and-wire enclosure opens off Thompson’s dining room and loops around the back of her house, allowing Cooper and Fizz to get fresh air and feast their eyes on feathered visitors while ensuring they never get within pouncing distance. “We sit and watch the birds a lot from our deck — and now the cats can come and watch the birds as well,” Thompson says.

Each year, America’s roughly 58 million domestic cats kill an estimated 2.4 billion birds, according to the Smithsonian Migratory Bird Center and the US Fish and Wildlife Service. Increasingly, bird conservation groups such as the Audubon Society and the American Bird Conservancy are promoting catios as a way to reduce the bloodshed.

Cat-lovers and bird-lovers aren’t natural allies, with feline bird predation historically a source of considerable tension, Portland Audubon conservation director Bob Sallinger says. “Cat and bird welfare groups had been at each other’s throats over this issue,” he says. But in recent years, catios have emerged as a solution both sides can agree on. “This is a way to address the conflict that’s humane and appeals to cat lovers and bird lovers alike,” Sallinger notes.

DIYers have been building backyard enclosures for cats since at least the 1980s, but as awareness of the environmental impact of free-roaming cats has grown in recent years, the need for a reliable solution became more apparent.  More formal cat patios, designed and built to the specs of one’s house to ensure no inadvertent escape by the feline, have emerged as a popular solution. “People have really embraced it — it’s become part of the culture, and we’re seeing lots of them around town,” says Sallinger.

In some parts of the US, the structures have caught on so much that they’re a part of the local landscape and even an attraction for visitors. Portland Audubon has teamed with the Feral Cat Coalition of Oregon since 2013 to sponsor an annual walking tour highlighting the city’s 600-plus catios. Most years, the tour draws between 1,200 and 1,300 attendees; last September, the groups hosted a virtual tour with 700 participants paying between $15 and $25 to access professionally produced videos, 360-degree interactive panoramas of catio interiors, and live Q&As. 

Wildlife groups now run similar tours in at least seven other cities, including Austin, Texas and Halifax, Nova Scotia. And more than two dozen small companies have sprung up to serve the burgeoning demand. Catio Spaces, based in Seattle, is one of them. Founder Cynthia Chomos has built around 300 catios since starting her business in 2013.

The enclosures can cost from $500 to $5,000. Materials, mostly wood, account for about half of that, Chomos says. And so far, rising lumber prices haven’t hurt her business. “We’re so busy right now,” she says. “Cat parents see this as an investment in the health and well-being of their cats.”

Cat owners also are sanguine about the risk of an idiosyncratic addition adversely affecting home values. Many catios are built to be easily disassembled; Chomos says about half of her clients simply take the catios with them if they relocate. “The other half have left their catios in place, because dog or cat owners are buying their home and like the idea of having an enclosed outdoor space,” she says.

In Los Angeles, one of the hottest catio markets right now, Alan Breslauer charges five-figure sums to build high-end patios that he describes as “cat Disneyland.” The former marketer became a full-time catio designer in 2017 when he founded Custom Catios.

“We’re located in Los Angeles, where everyone’s an environmentalist,” he says. “And then all the homes are million-dollar homes, so people can afford to pay more.”

One recent Custom Catios client, attorney Cindy Zegal, paid around $30,000 for a sprawling structure featuring a spiral staircase, plush hidey-holes accessed via cat-shaped cutout doors, a 10-foot fireman’s pole, a plexiglass viewing bowl, ramps and walkways that loop around the home and property. The project required multiple “emergency exit” hatches for Zegal’s cats, Peppermint and Spice.

“We wanted something that sat with the spirit of our house, which has lots of unique design elements,” Zegal says. Bird safety, she says, was a secondary consideration.

Other cat owners prefer a DIY approach. In the late 1990s, consultant Phil Price clambered onto the roof of his garage in Berkeley, California, and built a small catio out of PVC piping. Since then he’s spent numerous weekends expanding the enclosure, which now sprawls across a fence to allow his four rescue cats direct entry to his sister-in-law’s neighboring home.

The cats are happier as a result, says Price’s wife, Juliet Lamont, a consultant and lecturer at San Francisco State University. And with the cats safely enclosed, the couple’s garden has become a haven for nesting songbirds.

“We have so many nests in the back yard, and this spring we saw more baby birds … than we’ve ever seen,” Lamont says. “It really makes a huge, huge difference.” — Bloomberg

Beauty queen Catriona Gray amplifies her voice through music

AS A CHILD, beauty queen Catriona Gray loved music and would often burst into song.

“I would just sing a lot around the house. I would always love listening to music. And all throughout my academic life, I would always be in choir,” Ms. Gray recalled. “I took part in musicals and recitals. I was lead [singer] of my jazz band in high school.”

Prior to modeling and joining beauty pageants, Ms. Gray studied at the Berklee College of Music and she holds a master’s certificate in music theory.

As she continues her role of service in various organizations, Ms. Gray, who won Miss Universe in 2018, has expanded her platform and is exploring her artistry with the release of her new single “R.Y.F,” through Star Music.

Written by Trisha Denise and ABS-CBN Music creative director Jonathan Manalo in 2019, “Raise Your Flag” was originally recorded by KZ Tandingan with a rap verse written and performed by Kritiko.

Ms. Gray recorded the song early in 2020, and officially released it as a single, now titled “R.Y.F,” on May 28 this year.

“I’m all for standing up for something. But we also have to emphasize that we need to listen. we also need to have the conversation because that’s how we can move forward together,” Ms. Gray said of the song’s message.

Outside the world of pageantry, Ms. Gray said that she hopes to share more about her story as a person through her music.

“I have loved owning that identity (as a beauty queen) and I still do in many facets of the position that I am in. But I would really like to invite people in, as an artist, to know my story as a person, not as a beauty queen,” Ms. Gray said at an online press launch on June 1 held via Zoom.

“I really resonate with being a storyteller through music. And so, I would think  that would be a theme in the music that I am to put out,” she added.

“R.Y.F” is Ms. Gray’s second single following 2018’s “We’re in This Together” which was released in line with her advocacy for children’s education through the Young Focus organization.

“I am very grateful to have the opportunity to have this platform mainly because I brought pride to our country through Miss Universe. But I feel ever more the pressure to mark my space in the music industry,” Ms. Gray said. “It just felt very fitting to start with this song.”

Alongside her music, Ms. Gray continues her work as an ambassador for the National Commission for Culture and the Arts, the Philippine Red Cross, and Young Focus Organization.

“I will continue to be in a role of service for the rest of the year, and music is definitely in [the works] this year,” she said.

Ms. Gray will also co-host Binibining Pilipinas 2021 alongside Bb. Pilipinas Grand International 2016 Nicole Cordoves, on July 11.

“R.Y.F,” is available on digital music platforms, and the lyric video can be seen on YouTube at

(www.youtube.com/watch?v=tYV1piVbULo). — Michelle Anne P. Soliman

The Seasons Residences receives award

THE Seasons Residences in Bonifacio Global City was recently named the Best Residential High-Rise Development in the Philippines at the International Property Awards Asia-Pacific.

The four-tower project is a joint venture of Federal Land, Inc., Nomura Real Estate Development Company Ltd., and Isetan Mitsukoshi Holdings Ltd.

“This recognition reflects our continuous commitment to building dynamic and remarkable developments for generations to enjoy. It also rewards the hard work and dedication of our team. Our partnership with Nomura Real Estate and Isetan Mitsukoshi made it possible to bring such high quality and unique development into the country, for that we are very proud and grateful,” Cherie Fernandez, president of the joint venture company Sunshine Fort North Bonifacio Realty Development Corp., said.

Inspired by the four seasons of Japan, The Seasons Residences is the first residential project with a distinct Japanese concept in the country. Its four towers are named after the four seasons — Haru (Spring), Natsu (Summer), Aki (Autumn), and Fuyu (Winter). Structural works have reached the 31st floor for Haru and 27th floor for Natsu, while the third tower Aki will be launched by the third quarter.

ICTSI’s Brazil unit adds rail logistics to operations

LISTED port operator International Container Terminal Services, Inc. (ICTSI) announced on Monday that its Brazilian subsidiary ICTSI Rio Brasil is adding rail logistics to its operations.

“To run this operation, ICTSI Rio formed a new company — IRB Logística — to take over the operations of the terminal from Multitex Logistica starting on 1 July 2021,” ICTSI said in an e-mailed statement.

“IRB Logística will offer sustainable cargo handling, transport, and storage services to the economic, industrial, and production centers in Rio de Janeiro, Minas Gerais, and São Paulo,” it added.

Roberto Lopes, ICTSI Rio chief executive officer, said IRB Logística and ICTSI Rio have a common goal of driving economic growth in the region.

They intend to provide “more efficient, seamless, and value-added solutions across the entire logistics chain,” Mr. Lopes added.

ICTSI saw a 51% increase in its attributable net income for the first three months of 2021, owing to the improvements in its terminals and “significant” contributions from new shipping lines and services.

Its net income attributable to equity holders for the first quarter reached $90.1 million, up from $59.6 million in the same period in 2020.

The company’s total revenues increased 16% to $435 million in the first quarter from $375.8 million in the same period a year ago.

It handled 2.71 million twenty-foot equivalent units (TEUs) in the first quarter, 8% higher than the 2.51 million TEUs handled in the same period a year earlier. — Arjay L. Balinbin

Gov’t hikes Treasury bill award as rates drop on strong demand

BW FILE PHOTO

THE GOVERNMENT hiked the volume of Treasury bills (T-bills) it awarded on Monday as rates dropped across the board amid strong demand and steady inflation.

The Bureau of the Treasury (BTr) raised P21 billion via the T-bills on Monday, bigger than the programmed P15 billion, as the government accepted more non-competitive bids for all tenors to accommodate the strong demand seen for the offer. Total tenders reached P92.52 billion, making the offering 4.4 times oversubscribed.

Broken down, the BTr raised P7 billion from the 91-day papers, exceeding the initial plan to just raise P5 billion, as it accepted P4 billion in non-competitive bids versus the original program of P2 billion.

Demand for the three-month T-bills hit P26.359 billion. The tenor’s average rate fell by 5.9 basis points (bps) to 1.176% from the 1.235% fetched in the previous auction last week.

The Treasury also upsized the amount of 181-day T-bills it awarded to P7 billion from P5 billion originally, with total bids reaching P28.86 billion. The six-month debt papers fetched an average rate of 1.422%, down by 5 bps from 1.472% previously.

Lastly, the Treasury borrowed P7 billion via the 364-day securities versus the P5-billion program after the tenor attracted tenders worth P37.3 billion. The one-year IOUs were quoted at 1.649%, declining by 7.4 bps from the 1.723% fetched for the tenor last week.

National Treasurer Rosalia V. de Leon attributed the lower rates fetched for the T-bills to steady May inflation as well as good progress in the government’s vaccine rollout.

“Liquidity [was] further boosted with about P34 billion [in] maturities this week and redemption of P131 billion RTB (retail Treasury bonds) on June 13,” Ms. De Leon told reporters via Viber after Monday’s auction.

Expectations that inflation will start to decline by next month also contributed to the decline in T-bill rates, a bond trader said by phone.

Headline inflation was steady for the third straight month at 4.5% in May, the Philippine Statistics Authority reported last week, matching market expectations.

The figure was within the 4-4.8% estimate by the Bangko Sentral ng Pilipinas (BSP) for that month and also matched the median estimate in a BusinessWorld poll.

Year to date, inflation was 4.4%, higher than the 2-4% target of the BSP and its revised forecast of 3.9% for the year. May was the fifth month in a row that inflation went beyond target.

Meanwhile, Ms. De Leon said the lower-than-expected US non-farm payrolls figure released on Friday eased concerns about the Federal Reserve’s monetary tightening, which helped drive local yields lower.

Local rates likewise tracked the downtrend in US Treasury yields, the trader added.

US nonfarm payrolls data showed hiring increased in May as the pandemic eased, but not as much as expected, tempering expectations the Federal Reserve will tighten monetary policy sooner, rather than later, Reuters reported.

Nonfarm payrolls increased by a solid 559,000 jobs last month, helped by higher COVID-19 vaccination rates, but that was below the consensus forecast for 650,000 jobs added in May.

The softer-than-expected report means there is no urgency for the Fed to begin tapering its monthly purchase of $120 billion in bonds to support the economy.

The yield on the benchmark 10-year US Treasuries went down to 1.56% on Friday from 1.63% on Thursday.

On Tuesday, the BTr will offer P35 billion in reissued seven-year Treasury bonds (T-bonds) with a remaining life of six years and 10 months.

The Treasury wants to raise P215 billion from the local debt market in June: P75 billion via weekly offers of T-bills and P140 billion from weekly auctions of T-bonds.

The government is looking to borrow P3 trillion from domestic and external sources this year to help fund a budget deficit seen to hit 9.4% of gross domestic product. — B.M. Laforga with Reuters

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