MANILA, Philippines – In a notable shift from recent weeks, the Philippine government has increased its Treasury bill (T-bill) awards for the first time in over a month, capitalizing on declining yields across all maturities.
This move follows a period where the Bureau of the Treasury (BTr) consistently awarded less than its planned borrowing amount, as investors demanded higher returns amid market volatility linked to geopolitical tensions in the Middle East.
During Monday's auction, the government successfully raised ₱40.7 billion, surpassing its initial target of ₱33 billion. The auction was met with robust demand, attracting total tenders of ₱127.3 billion—making it nearly four times oversubscribed.
While the BTr fully awarded the 91-day and 182-day T-bills, it opted for a partial award of the 364-day tenor.
"Treasury bill average auction yields again mostly corrected lower for the second straight week after the net decline in global crude oil prices reached near one-month lows. This led to the sharp decline in local diesel and fuel prices, which could help ease inflationary pressures," said Michael Ricafort, chief economist at Rizal Commercial Banking Corp.
The yield on the 91-day T-bill dropped to 4.542 percent from 4.750 percent the previous week. The 182-day paper saw its average rate fall to 4.649 percent from 4.882 percent, while the 364-day T-bill rate decreased to 5.052 percent from 5.168 percent.
This decline in yields comes just ahead of the Bangko Sentral ng Pilipinas' (BSP) upcoming policy meeting. Market analysts are closely watching, with a majority of economists anticipating a potential quarter-percentage-point rate hike, which would mark the first increase in more than two years.