MANILA – Results were mixed in Tuesday's Treasury bill (T-bill) auction as the Bureau of Treasury (BTr) decided to fully award bids for the 182- and 363-day securities while partially awarding the 91-day T-bills.
The 182- and 363-day securities fetched average rates of 5.978 percent and 6.062 percent, respectively.
The 91-day T-bill, meanwhile, was capped at 5.922 percent.
Rizal Commercial Banking Corporation chief economist Rizal Ricafort said T-bill auction yields were again slightly higher week-on-week.
Ricafort said the 91-day tenor went up from the 5.827 percent last June 5.
The 182-day and 364-day T-bill also went up from the 5.891 percent and 5.980 percent last week.
"[The higher rate was] ahead of a possible pause on Fed(eral Reserve) rates on June 14, 2023 as well as the latest signals from the Fed on future Fed rate moves, as well as the latest US inflation data which is expected to ease further to around 4.1 percent in May 2023 after the 2-year low of 4.9 percent in April 2023," Ricafort said in a statement.
He said the higher yield was also ahead of a possible pause on local policy rates on June 22.
The auction was 1.3 times oversubscribed, attracting PHP20 billion in total tenders.
With its decision, the committee raised PHP13.6 billion of the PHP15 billion total offering. (PNA)
