Mixed results mark T-bills auction

By Anna Leah Gonzales

February 26, 2024, 3:15 pm

<p>Bureau of the Treasury<em> (File photo)</em></p>

Bureau of the Treasury (File photo)

MANILA – Results were mixed during Monday's Treasury bills (T-bills) auction as the Bureau of the Treasury (BTr) fully awarded bids for the 91- and 364-day T-bills while partially awarding the 182-day securities.

The 91-day, 182-day and 364-day T-bills fetched an average rate of 5.710 percent, 5.971 percent and 6.085 percent.

Last week, the average auction yield of the 91-day, 182-day and 364-day T-bills was slightly lower at 5.592 percent, 5.927 percent and 6.079 percent, respectively.

Rizal Commercial Banking Corporation chief economist Michael Ricafort said T-bill average auction yields were mostly higher for the 10th straight week, similar to the latest week-on-week increase in the comparable short-term PHP Bloomberg Valuation Service (BVAL).

Ricafort said this is after the Retail Treasury Bond issuance at PHP584 billion, higher than the PHP400 billion target that could mop up some of the excess peso liquidity in the financial system and could lead to some increase in the supply of government securities in the market.

"T-bill yields also continue to go up slightly after lower odds of Fed(eral Reserve) rate cuts priced in by the markets in 2024 amid cautious stance by most Fed officials recently in making sure that U.S. inflation is moving towards the Fed’s 2 percent target," he added.

Total tenders amounted to PHP35.77 billion, more than twice the PHP15 billion.

With its decision, the BTr raised PHP14.8 billion of the PHP15 billion total offering. (PNA)