BTr raises PHP28.4 B in T-bill auction, yields drop

The Bureau of the Treasury (BTr) increased the issuance of Treasury bills (T-bills) during Monday's auction, raising PHP28.4 billion compared to its initial plan of borrowing PHP25 billion.

For the 91-day T-bills, total tenders amounted to PHP103.5 billion with an accepted amount of PHP7 billion and a yield of 5.388 percent, down from 5.422 percent in the previous auction.

The Auction Committee also upped the award for 182-day T-bills from PHP8.5 billion to PHP11.9 billion, with total tenders reaching PHP36.74 billion and a yield of 5.543 percent, down from 5.566 percent last week.

For the 364-day tenor, total tenders were PHP28.97 billion, with an accepted amount of PHP9.5 billion and a yield of 5.627 percent, slightly lower than the previous rate of 5.631 percent.

Rizal Commercial Banking Corporation chief economist Michael Ricafort noted that average auction yields for T-bills have been slightly lower for the fourth consecutive week due to potential interest rate cuts by the Bangko Sentral ng Pilipinas (BSP) as signaled by Department of Finance Secretary Recto.