Strong investor demand pushed yields lower at Monday’s treasury bill auction, as easing market concerns over tensions in the Middle East boosted appetite for short-term government debt.
The Bureau of the Treasury raised the programmed P36 billion, but total tenders surged to P127.26 billion, reflecting robust liquidity and a search for safe, short-duration assets. Nearly half of total bids, or P60.37 billion, were directed toward the 91-day tenor, underscoring preference for shorter maturities amid lingering global uncertainty.
The government awarded P16.8 billion each for the 91-day and 182-day securities, higher than the P12 billion offered for each maturity. In contrast, demand for longer tenors was more selective, with only P7.05 billion awarded for the 364-day bills as the Treasury rejected higher rate bids for one-year paper.
Average yields declined across all tenors. The 91-day bill rate eased to 4.542 percent from 4.750 percent in the previous auction, while the 182-day yield slipped to 4.649 percent from 4.882 percent. The 364-day paper also saw its average rate fall to 5.052 percent from 5.168 percent week on week.
The strong oversubscription and declining yields suggest investors are growing more comfortable with near-term risk conditions, particularly as geopolitical concerns show signs of stabilizing. At the same time, the preference for shorter-dated instruments indicates that market participants remain cautious about locking in funds for longer periods, especially with interest rate expectations still evolving.
