Treasury bill (T-bill) yields moved mostly higher at Monday’s auction, as investor sentiment wavered due to renewed global trade tensions.
The uncertainty brought on by the looming U.S. tariff increases—despite strong domestic demand and a recent rate cut by the Bangko Sentral ng Pilipinas (BSP)—dampened the otherwise favorable auction environment.
Total bids reached P74.5 billion, nearly three times the P25 billion offered by the Bureau of the Treasury (BTr). Despite higher yields demanded by government securities dealers, the BTr awarded the full amount, reflecting continued liquidity in the market.
The average yield for the 91-day T-bill rose to 5.422 percent from 5.393 percent last week. Yields on longer tenors also edged higher, with the 182-day bill climbing to 5.657 percent from 5.645 percent. The 364-day T-bill, however, saw a marginal decline to 5.722 percent from 5.726 percent in the previous auction.
Investors remained cautious following the United States’ move to delay the implementation of its “reciprocal tariff” policy, originally set to take effect on 9 April. The proposed measure would sharply increase import duties on a wide range of goods from different countries, with China expected to bear the brunt of the penalties. Though delayed, the threat of escalation continues to rattle global markets.
The BSP’s decision last week to cut its benchmark interest rate by 25 basis points to 5.5 percent—prioritizing easing inflation over external risks—was not enough to fully temper the upward pressure on short-term yields amid prevailing global headwinds.
