Average rates on Treasury bills moved in mixed directions at Monday’s auction, as investors reacted to signals from the U.S. Federal Reserve that it may hold off on cutting interest rates in December.
The yield on the 91-day T-bill inched up to 4.874 percent from 4.858 percent in the previous week, while the average rate on the 182-day paper slipped slightly to 5.026 percent from 5.044 percent. The 364-day T-bill was almost unchanged at 5.099 percent, compared with last week’s 5.093 percent.
Despite the mixed results, the auction rates remained lower than prevailing secondary market yields, indicating sustained demand from investors seeking short-term placements.
The auction attracted robust participation, with total bids reaching P99.1 billion—4.5 times oversubscribed against the P22.0 billion initial offer. The strong demand prompted the Bureau of the Treasury (BTr) to double the accepted non-competitive bids for the 364-day securities to P6.0 billion.
As a result, the government was able to raise P25.0 billion, exceeding its original program for the week.
Analysts said investors remain cautious amid global monetary uncertainty but continue to favor shorter tenors while awaiting further signals from the Fed and domestic inflation data. The mixed auction outcome, they added, reflects expectations that local rates may stay steady in the near term as the Bangko Sentral ng Pilipinas aligns its policy stance with global trends.
Philippine inflation data for October are due Wednesday, November 5.
The BTr is set to offer longer-term government securities in the coming weeks as it continues to manage borrowing costs and meet funding requirements for the year.
