Average yields on treasury bills declined across all tenors at Monday’s auction, as expectations of further monetary easing continued to push rates lower.
Strong demand drove total tenders to P102.9 billion—more than four times the P25 billion on offer—allowing the Bureau of the Treasury (BTr) to upsell and award a total of P28.4 billion, primarily through the 182-day securities.
The yield on the 91-day T-bill slipped to 5.475 percent from 5.526 percent the previous week. Rates for longer tenors also declined, with the 182-day paper settling at 5.575 percent, down from 5.618 percent, while the 364-day T-bill slipped to 5.650 percent from 5.656 percent.
Yields in the secondary debt market mirrored the downtrend, reflecting investor sentiment that the Bangko Sentral ng Pilipinas (BSP) could continue cutting policy rates as early as the fourth quarter, following signs of easing inflation.
The BTr’s strong auction result underscores persistent liquidity in the market and heightened investor appetite for short-term government securities amid a shifting interest rate environment.
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