The Bureau of the Treasury has awarded the entire P15 billion of treasury bills it offered at the auction Monday, allowing yields to only creep up slightly.
Demand for the short-term government borrowing surged three times to P47.51 billion. Unlike in previous auctions, however, the National Treasury didn’t increase the issue size as rates continued to rise.
Yield on the 91-day paper rose to 5.461 percent from last week’s 5.398 percent while that on 181-day increased to 5.862 percent from 5.810 percent.
The average rate on the 364-day treasury bills hardly moved at 6.075 percent fromm 6.076 percent as over 40 percent of the total tenders went for the one-year maturity.
Yield in the secondary debt market has started to ease from last week’s level, allowing the National Treasury to tap the break on borrowing more and wait for better interest rates to ease borrowing cost. The National Treasury issues bills and bonds to help fund the government budget.
