Treausury bill yields were mostly lower at the auction Monday, with strong demand taming rates on the shorter maturities.
The Bureau of the Treasury awarded the entire P15 billion of treasury bills on offer—P5 billion for each of the 91-day, 182-day and 364-day debt papers. Total tenders was more than three times the offered amount at P51.20 billion.
Yield on the three-month paper eased to 5.869 percent, the first time it retreated after several weeks of gradual increases. At last week’s auction, yield on the 91-day paper rose to 5.888 percent.
Average rate on the 182-day bill slipped back to sub-6 percent after rising to 6.002 percent. It stood at 5.988 percent after Monday’s auction. Strongest demand was for the six-month paper, with total tenders reaching P18.59 billion.
Yield on the one-year bill was fractionally higher at 6.081 percent from last week’s 6.080 percent.
A narrow budget deficit in March due to higher government revenue could further moderate demand for higher rates in the market, especially at Tuesday’s auction of P30 billion worth of 20-year bonds.
