Treasury raises PHP30.8B from T-bills auction, exceeding PHP22B target

The Bureau of the Treasury raised PHP30.8 billion from a Treasury bills auction on Monday, exceeding the initial offer of PHP22 billion.

Total bids reached PHP118.944 billion, leading to higher accepted non-competitive bids for 91-day and 182-day securities, with demand more than five times as much as the amount on offer.

For the 91-day T-bills, total tenders were PHP35.384 billion, resulting in an average rate of 5.10%, while the 182-day securities saw bids totaling PHP31.05 billion with an average rate of 5.496%.

The government also made a PHP11.2-billion award for the 364-day debt papers, more than the programmed PHP8 billion, as demand totaled PHP52.06 billion and the average rate decreased to 5.697%.

T-bill rates fell due to anticipation of an April rate cut from the central bank and lower reserve requirement ratios (RRR) by month-end, which could cause debt yields to decline further.