The Bureau of the Treasury saw lower yields at Monday’s auction on strong demand, allowing it to fully award the entire P15 billion offering to government securities eligible dealers.
Total bids reached P59.3 billion, nearly four times the offered amount, underscoring increased appetite in the market for shorter-dated debt just days after the Bangko Sentral ng Pilipinas indicated it could cut key interest rates as early as August.
The decline in average rates was sharpest for 91-day treasury bills, whose yield dropped to 5.172 percent from 5.727 percent.
The yield on the 182-day paper slipped to 5.864 percent from 5.893 percent while than on the 364-day paper declined to 6.007 percent from 6.037 percent.
On Tuesday, the BTr will auction P30 billion worth of 20-year bonds.
In the secondary debt market Monday, yield on 20-year maturities are quoted at 6.671 percent.
