MANILA – The Bureau of the Treasury (BTr) fully awarded bids for Treasury bills (T-bills) during Monday's auction.
The 91-, 182-, and 364-day T-bills fetched average rates of 5.226 percent, 5.685 percent, and 5.999 percent, respectively.
The auction attracted PHP43.2 billion in total tenders.
With its decision, the BTr raised the full program of PHP15 billion for the auction.
Rizal Commercial Banking Corporation chief economist Michael Ricafort said the T-bills average auction yields corrected higher for the fourth straight auction, similar to the weekly increase in the comparable short-term PHP Bloomberg Valuation Service (BVAL) yields.
"It is important to note that the Treasury bill average auction yields are already mostly higher vs. the comparable short-term PHP BVAL yields as of Jan. 15, 2024 except for the 91-day tenor," said Ricafort.
Ricafort said the three-month PHP BVAL was at 5.34 percent, six-month at 5.6 percent, and one-year at 5.97 percent.
According to Ricafort, the higher auction yield came after the recent volatility in the U.S. dollar/peso exchange rate, the increase in global crude oil prices after increased tensions at the Red Sea area, and after the U.S. and UK air strikes on Houthi rebel targets in Yemen, in response to increased attacks by Houthi rebels on some ships at the Red Sea area.
Offsetting positive factors, however, include possible rate cuts this year. (PNA)
