The average rate on Treasury bills continued to decline at Monday’s auction, guided down by strong demand that enabled the Bureau of the Treasury (BTr) to increase its borrowing.
Total tenders reached P70.6 billion, more than three times the P22 billion originally offered by the BTr. Of this, P27.6 billion in tenders were accepted. While the total demand remained robust, it marked a significant drop from the over ₱90 billion seen in the last three auctions. This decline could signal that demand may begin to ease as T-bill rates continue to fall.
The auction committee capitalized on the lower bids, particularly for the 91-day and 182-day T-bills by increasing the issue size.
Yields across all tenors were lower. The 91-day bill saw its yield ease to 5.101 percent from 5.113 percent in the previous auction. The 182-day bill rate slipped to 5.447 percent, down from 5.488 percent. The yield on the 364-day T-bill also dropped to 5.671 percent from 5.725 percent.
This continued decrease in rates suggests investor confidence and a favorable environment for government borrowing, even as demand starts to moderate.
