The Bureau of the Treasury (BTr) fully awarded all bids for Treasury bills (T-bills) in Monday’s auction, raising the full program amount of P25 billion amid strong investor demand totaling P97.17 billion in tenders.

Average rates for the 91, 182, and 364-day securities settled at 4.884 percent, 5.058 percent, and 5.097 percent, respectively — slightly lower compared to last week’s 4.880 percent, 5.072 percent, and 5.119 percent.

BSP surprise rate cut

Rizal Commercial Banking Corporation chief economist Michael Ricafort said the easing in T-bill yields reflected the continuing effect of the Bangko Sentral ng Pilipinas’ (BSP) surprise rate cut, as well as dovish signals from the US Federal Reserve.

“T-bill average auction yields also mostly lower after dovish signals from most Fed officials recently (which) would help support possible future Fed rate cuts that could be matched by the BSP to maintain healthy interest rate differentials,” Ricafort said.

Treasury bills are short-term government securities issued to raise funds for public expenditures and manage national liquidity. Typically maturing in one year or less, they are considered among the safest investments since they are backed by the national government.