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 5.940 percent, 5.989 percent, and 6.023 percent, respectively, -- all lower than secondary market benchmark rates.
In comparison, the PHP Bloomberg Valuation Service rate was at 5.950 percent for the three-month tenor, 6.115 percent for the six-month tenor, and 6.149 percent for the one-year tenor.
Last week, the average auction yield of the 91-day T-bills was lower at 5.900 percent while rates for the 182-day and 364-day T-bills were higher at 6.093 percent and 6.062 percent, respectively.
"Most Treasury bill average auction yields corrected slightly lower, after the latest 0.25 [basis points] local policy rate cut that came as a pleasant surprise for the local financial markets and the overall economy, as a possible start of the series of rate cuts locally and by the Fed from 2024-2026," Rizal Commercial Banking Corporation chief economist Michael Ricafort said in a statement.
The auction was 3.1 times oversubscribed with total bids reaching PHP61.3 billion, prompting the Committee to increase the accepted noncompetitive bids for the 182-day securities.
With its decision, the BTr raised a total of PHP22.6 billion compared to the PHP20 billion initial offer. (PNA)
