The average rates on treasury bills (T-bills) dropped at Monday’s auction, as strong demand pushed yields lower amid expectations of further monetary easing, following President Donald Trump’s call for additional interest rate cuts by the Federal Reserve.
The government’s successful international bond offering worth USD2.5 billion and EUR1 billion last week also eased the need for the Bureau of the Treasury to borrow heavily locally immediately.
The average rate of the 90-day T-bill eased to 5.113 percent from the previous level of 5.165 percent while that on the 181-day debt paper slipped to 5.488 percent from last week’s 5.503 percent. Yield on the 363-day T-bill slid to 5.724 percent from 5.840 percent.
The auction was 4.1 times oversubscribed, attracting P91.1 billion in total tenders, prompting the auction committee to double the accepted non-competitive bids for the 90- and 181-day T-bills to P5.6 billion each. With its decision, the committee raised a total of P27.6 billion compared to the P22.0 billion initial offer.
