Treasury bill yields rose across all maturities at Monday’s auction as the Bangko Sentral ng Pilipinas’ recent rate hike pushed borrowing costs higher and investors braced for the possibility of further monetary tightening.
The 91-day T-bill fetched an average rate of 5.214 percent, up from 5.138 percent last week. The 182-day yield climbed to 5.622 percent from 5.517 percent, while the one-year rate rose to 5.807 percent from 5.717 percent.
The yield increases came as inflation concerns kept investors cautious, with the central bank’s latest policy move reinforcing expectations that interest rates could remain elevated for longer.
Demand was also measured. Total tenders reached P60 billion, exactly matching the maximum amount on offer, but the Treasury accepted only P38.7 billion, below its P42-billion minimum programmed volume.
The government awarded P14.8 billion in 91-day bills and P14 billion in 182-day securities, both below their respective minimum offered amounts. The 364-day bill bucked the trend, with P10 billion awarded, exceeding its minimum volume.
The auction points to a market that remains willing to lend to the government but is demanding better compensation as the interest-rate outlook shifts.
The higher yields also raise the government’s short-term borrowing cost, adding to the significance of the BSP’s policy decision for fiscal financing.
Unlike last week, the Treasury did not offer cash management bills, leaving the regular T-bill auction as the main source of fresh signals on short-term funding costs.
Investors are pricing in a tighter rate environment, while keeping their appetite for government paper selective.
