The Bureau of the Treasury (BTr) raised P54.2 billion from its Treasury bill (T-bill) and Cash Management Bill (CMB) auction, buoyed by strong investor demand, although it partially awarded bids for the 364-day T-bill amid elevated borrowing costs.
T-bill tenders reached P70.0 billion, or 1.6 times the P44.2-billion amount awarded. The BTr fully awarded the 91-day and 182-day papers at P20.0 billion and P15.0 billion, respectively, while accepting just P9.2 billion in bids for the 364-day tenor.
Average yields settled at 5.992 percent for the 91-day T-bill, 6.229 percent for the 182-day paper, and 6.444 percent for the 364-day instrument. The rising yield curve underscores investors’ demand for higher returns on longer maturities, while the partial award at the longest tenor suggests the Treasury remained selective on pricing.
Demand was even stronger for the 35-day CMB, which drew P23.0 billion in tenders, or 2.3 times the P10.0-billion offer. The BTr fully awarded the issue at an average rate of 5.278 percent, reflecting solid appetite for short-dated government securities.
The auction came after the Bangko Sentral ng Pilipinas (BSP) raised its overnight interest rates by half a percentage point to 5.5 percent last Thursday in a bid to tame inflation. The central bank also signaled that further rate hikes remain possible if inflation proves stubbornly high, reinforcing expectations that borrowing costs could stay elevated.
The BSP’s tightening stance could keep investors demanding higher yields, particularly on longer-dated securities, as markets reassess the interest-rate outlook.
