Treasury bill yields higher at auction despite rejections

Treasury bill yields, a reflection of the cost incurred when government borrows short term, were higher at the auction Monday even as the Bureau of Treasury rejected some bids, particularly for three- and six-month debt papers.

The market has been pushing treasury yields higher amid concern the Bangko Sentral ng Pilipinas will raise benchmark interest rates at its monetary policy meeting scheduled early next month due to moderate inflationary pressure.

Average rate on the 91-day treasury bill rose to 5.990 percent from 5.806 percent even as the National Treasury rejected some of the P5.14 billion tendered during the auction. Accepted bids total P3.64 billion. 

Yield on the 182-day bill climbed to 6.207 percent from 6.115 percent. The National Treasury only accepted P3.31 billion of the P6.52 billion tendered for the P5 billion offer.

The National Treasury awarded the entire P5 billion offered for the 364-day bill, allowing yield to rise slightly to 6.388 percent from 6.305 percent. Total tenders reached P7.71 billion.

On Tuesday, the Bureau of Treasury will offer P30 billion worth of 7-year treasury bonds due July 27, 2030 that carry a coupon rate of 6.375 percent.