Yields on Treasury bills were mixed at Monday’s auction, as strong investor demand built up over the past two weeks pulled down rates for shorter-dated securities, while longer tenors edged higher despite selective bid rejections, underscoring lingering uncertainty in the market.
The Bureau of the Treasury partially awarded its offering, accepting P22.8 billion out of the P27 billion on the auction block after rejecting bids for the 364-day tenor that dealers sought to price higher.
Average yield on the 91-day Treasury bill declined to 4.985 percent from 5.004 percent in the previous March 23 auction, reflecting sustained demand for short-term government securities. The 182-day paper saw its average rate settle at 5.080 percent, compared with 5.032 percent previously, indicating a slight upward adjustment.
Meanwhile, the 364-day Treasury bill fetched a higher average rate of 5.204 percent from 5.166 percent earlier, even as some bids were rejected, suggesting the government pushed back against attempts to further raise borrowing costs for longer tenors.
Total tenders reached P50.2 billion, nearly double the offered amount, underscoring ample liquidity in the market and continued investor preference for low-risk government instruments amid lingering global uncertainties.
The mixed yield movement reflects a balancing act between strong demand for shorter maturities and cautious sentiment over longer-term rates, particularly as inflation and global interest rate trends remain in focus.
The auction results came as data showed the national government’s outstanding debt eased slightly in February to P18.16 trillion, up by P25.74 billion from end-January levels.
The modest increase highlights a stable and well-managed debt position despite evolving global financial conditions.
Domestic borrowings continued to dominate, accounting for nearly 69 percent or P12.48 trillion of the total, while foreign debt declined by 2.2 percent to P5.68 trillion. The shift toward domestic financing is seen as a deliberate strategy to reduce exposure to foreign exchange risks and maintain fiscal resilience.
