Treasury bill yields sent mixed signals at Monday’s auction—the first for the year—as strong demand met shifting rate expectations. While analysts had penciled in a mild uptick in rates, mirroring secondary market movements after the December auction lull, investors still piled in.
Demand swamped the government’s P27-billion offer, with total tenders surging to P108.11 billion. The hefty appetite prompted the Bureau of the Treasury to raise awards for the 91-day and 182-day papers to P12.6 billion, well above the P9-billion offering.
Rates moved in different directions. The 91-day bill yield edged up to 4.755 percent from 4.731 percent previously, while the 182-day paper eased to 4.895 percent from 4.903 percent. The 364-day bill climbed to 4.936 percent from 4.924 percent.
Expectations of further monetary easing by the Bangko Sentral ng Pilipinas—supported by a benign inflation outlook—could help cap government securities yields. Still, supply looms large: the government plans a hefty P824-billion borrowing spree in the first quarter of 2026 alone to fund the budget.
