Philippine Treasury bill (T-bill) yields rose at Monday’s auction compared to the previous week, as market participants await key monetary policy decisions from both the US Federal Reserve and the Bangko Sentral ng Pilipinas (BSP) later this week.
The uptick in yields came amid growing anticipation of global interest rate movements and potential adjustments in the domestic policy stance later this week.
The auction saw strong demand, with total bids amounting to P46.7 billion, more than three times the P15 billion offered. Despite the heightened demand, the full amount was awarded, reflecting the National Treasury’s view of current rates. The strong demand suggests market participants may also have been positioning themselves ahead of year-end window-dressing efforts, a common practice where funds adjust their portfolios for improved financial statements.
Average yields for the 91-day, 182-day, and 364-day T-bills stood at 5.818 percent, 5.975 percent, and 5.977 percent, respectively. While these yields were higher than those from the previous auction, they still remained lower than the prevailing secondary market rates. Last week’s auction results showed an average rate of 5.774 percent for the 91-day bill, 5.922 percent for the 182-day paper, and 5.968 percent for the 364-day treasury bill.
