Demand for treasury bills eased at the auction held by the Bureau of the Treasury (BTr) on Monday compared to previous weeks, with some liquidity in the market soaked by the ongoing offer and exchange of retail treasury bonds.
Total tenders was still high at P30.4 billion, twice the offered amount of P15 billion. The entire offer was awarded in full even though the national treasury capped the rate on the 91-day bill.
But even with strong demand, average interest rates on the three- and six-month bills continued to rise.
Yield on the 91-day bill increased to 5.592 percent from 5.506 percent in previous auction while that on the 182-day debt paper rose to 5.927 percent from 5.879 percent.
Yield on the 364-day paper climbed slightly to 6.079 percent from 6.064 percent.
The national treasury will end on Friday its offer of retail treasury bond due 2029 with a coupon of 6.25 percent. Aside from fresh money, the National Treasury is also accepting offers from holders of RTBs due next month to exchange their holdings.
