Treasury bill (T-bill) yields were mixed at Monday’s auction, with average rate on the 91-day debt paper up slightly from previous auction after data last week showed inflation accelerating in August.
Yield on the six- and 12-month T-bills declined as most bids for the P15 billion offering were focused on debt securities maturing on the longer-dated tenors. Total tenders reached P51.81 billion, with P379 billion going for the 182-day and 364-day papers.
Average rate on the 91-day T-bills rose to 5.575 percent from the previous week’s 5.552 percent, reflecting inflation concerns and yield in the secondary market. The P5 billion offered at the auction was awarded in full, with total tenders reaching P14.72 billion, with only half of the tendered amount placed as competitive bids by institutional investors.
Inflation in August unexpectedly rose 5.3 percent year-on-year after sliding to 4.7 percent in July.
Yield on the 182-day paper eased to 5.690 percent from last week’s 5.966 percent while that on 364-day bills eased to 6.190 percent from 6.198 percent in the previous auction. The P5 billion offered for each maturity was awarded in full, with total tenders reaching P15.98 billion for the six-month paper and P21.12 billion for 364-day bills.
On Tuesday, the National Treasury will auction P30 billion worth of treasury bonds (T-bonds) set to mature in July 2030.
