Average rates on government treasury bills moved in mixed directions at Monday’s auction, with the shortest tenor edging higher as investors priced in political uncertainties, while longer maturities continued to ease on expectations of further monetary loosening after weaker third-quarter growth.
The 91-day treasury bill posted an average yield of 4.842 percent, slightly above last week’s 4.821 percent as investors sought a premium for short-term risk. In contrast, the 182-day tenor saw its rate soften to 4.970 percent from 4.810 percent, while the 364-day paper slipped to 5.017 percent from 5.054 percent, reflecting growing market conviction that policymakers may cut rates to support economic activity.
Traders said the latest GDP print has bolstered sentiment that borrowing costs could decline over the next few months, making medium-term government securities more attractive and driving yields lower.
Despite the more favorable rates on longer bills, overall bidding volume fell to P84 billion from P98.3 billion last week, as some investors stayed cautious ahead of key data releases and global market developments.
Still, the Bureau of the Treasury moved to capitalize on the easing trend, upsizing awards for the 182-day securities. It accepted a total of P25 billion in bids, above the initial P22 billion offer, citing strong demand at lower yields for the longer-dated papers.
Auction results suggest investors are carefully navigating a landscape shaped by political noise, cooling growth momentum and rising expectations of monetary policy support—setting the tone for upcoming government debt issuances in the final stretch of the year.
