BTr fully awards P20B T-bills as rates decline on BSP cut

The Bureau of the Treasury (BTr) successfully sold all P20 billion in Treasury bills offered on Monday, February 10, as rates declined across all tenors.

This decline in rates is largely attributed to the Bangko Sentral ng Pilipinas' (BSP) recent 25 basis point policy rate cut and pronouncements from Governor Benjamin E. Diokno suggesting potential further reductions by midyear.

Deputy Treasurer Erwin D. Sta. Ana also noted that a manageable inflation outlook contributed to the lower T-bill rates.

The auction saw strong demand, with tenders totaling P56.3 billion, making it nearly three times oversubscribed.

Specifically, the 91-day T-bills were awarded at an average rate of 3.115%, down from 3.187% previously.

The 182-day T-bills were sold at 3.461%, a decrease from 3.523%.

For the 364-day T-bills, the rate fell to 3.908% from 3.964% in the prior auction.

Sta. Ana mentioned the BTr might consider a large domestic bond issuance in the second half of the year to fund the P671.2 billion budget deficit, given the current elevated government spending.