Yields on shorter-dated Philippine Treasury bills climbed at Monday’s auction as investors positioned for a possible further monetary tightening by the Bangko Sentral ng Pilipinas (BSP) later this week.
The 91-day T-bill rate rose to 5.992 percent from 5.845 percent previously, while the 182-day yield increased to 6.229 percent from 6.171 percent, reflecting continued upward pressure on short-term government borrowing costs.
The trend was less pronounced at the long end of the auction. The 364-day T-bill yield fell to 5.278 percent from 6.351 percent last week, with the Bureau of the Treasury rejecting some tenders, tempering the impact of investor bids on the resulting rate.
The contrasting movements suggest investors remain sensitive to near-term interest-rate prospects, although the one-year result also reflects the Treasury’s decision on which offers to accept.
Meanwhile, the government fully awarded the P10-billion offering of 35-day benchmark Treasury bills, or cash management bills (CMBs), at an average rate of 5.278 percent. The offer attracted P23 billion in tenders, making it 2.3 times oversubscribed and signaling demand for short-term placements.
Overall, the Treasury raised P54.2 billion, comprising P44.2 billion from regular T-bills and P10 billion from CMBs.
Investors are watching the BSP’s upcoming policy decision for clues on the direction of borrowing costs. Expectations of tighter monetary policy can push yields higher as buyers demand better returns on newly issued securities, though auction results also depend on liquidity conditions and the amount of debt the government offers.
