Manila: The Bureau of the Treasury (BTr) raised PHP27.6 billion from the Treasury bills (T-bills) auction on Monday, surpassing the PHP22 billion initial offering. The auction was 4.1 times oversubscribed, attracting PHP91.1 billion in total tenders, prompting the Committee to double the accepted non-competitive bids for the 90- and 181-day T-bills to PHP5.6 billion each.

According to Philippines News Agency, total tenders for the 90-day T-bills reached PHP32.25 billion, with the Auction Committee accepting PHP9.8 billion, higher than the initial PHP7 billion offer. The yield settled at 5.113 percent. The BTr also raised PHP9.8 billion from the 181-day Treasury bills, up from the initial offer of PHP7 billion, with total tenders reaching PHP26.65 billion and an average yield of 5.488 percent.

The BTr reported that total tender for the 363-day T-bills reached PHP32.16 billion, with the Auction Committee accepting PHP8 billion and yield settling at 5.724 percent. Rizal Commercial Banking Corporation chief economist Michael Ricafort noted that Treasury bill average auction yields declined for the fourth consecutive week due to the possibility of a local policy rate cut, potentially as early as the first BSP rate-setting meeting in 2025 on February 13, as indicated by most local monetary officials.

Last week, the average rate of the 91-, 182-, and 364-day T-bills settled at 5.165 percent, 5.503 percent, and 5.840 percent, respectively. Ricafort mentioned that the latest Philippine government bond issuance could reduce the need for the national government to borrow locally at the moment, worth US$3.29 billion at lower borrowing costs and narrower spreads over comparable US Treasuries. This serves as a positive signal on the confidence of international investors in the Philippine sovereign credit.