The Bureau of the Treasury raised P80 billion after fully awarding Treasury bills and cash management bills at the auction on Monday, with strong investor demand allowing the government to secure fresh funding despite mixed movements in short-term interest rates.
The Treasury accepted all bids for Treasury bills and CMBs as total tenders climbed to P210 billion, underscoring ample liquidity in the financial system and sustained appetite for government securities.
Yields on Treasury bills were mixed. The average rate on the 91-day paper inched up to 5.104 percent from 5.097 percent at last week’s auction, while the six-month bill eased to 5.685 percent from 5.707 percent. The one-year Treasury bill also slipped to 5.966 percent from 5.972 percent.
Demand remained strong, with Treasury bill tenders reaching P138.4 billion, nearly three times the amount on offer.
The Treasury also fully awarded 35-day and 63-day cash management bills at average rates of 4.816 percent and 4.967 percent, respectively. The short-dated securities attracted P71.6 billion in bids, or 2.4 times the amount offered.
The mixed yield movements suggest investors remain cautious over the interest-rate outlook while continuing to lock in relatively attractive returns on government debt. At the same time, the heavy oversubscription reflects ample market liquidity and confidence in sovereign securities as investors await clearer signals on the Bangko Sentral ng Pilipinas’ next policy move.
The latest auction provides the government with another funding boost as it continues to finance its budget requirements through a mix of short- and long-term domestic borrowings.
