The National Treasury awarded the entire P15 billion it offered at the treasury auction on Monday due to still strong demand for government debt.
The auction results extended the creeping increase in treasury yields since the start of the year, which would eventually raise the interest expense for the government. The government plans to raise the bulk of its borrowings for budget support through the domestic capital market.
Total bids reached P38.1 billion, which is 2.5 times the offered amount.
Yield on the 91-day paper rose to 5.398 percent from 5.305 percent while that on 181-day increased to 5.810 percent from 5.766 percent. The average rate on the 364-day treasury bills creeped up to 6.076 percent from 6.037 percent.
