Manila, Philippines - The Bureau of the Treasury (BTr) successfully awarded the full number of bids for Treasury bills (T-bills) in their latest auction on Monday. The 91-, 182-, and 364-day T-bills were awarded at average rates of 6.123 percent, 6.513 percent, and 6.560 percent, respectively, indicating investor confidence and a positive economic outlook.
According to Philippines News Agency, the average auction yields for T-bills showed a correction after seven consecutive weeks of increase. This change is attributed to the slower-than-expected headline inflation rate of 4.9 percent, which is closer to the Bangko Sentral ng Pilipinas (BSP) target range of 2-4 percent. The adjustment in T-bill rates follows the national government's debt-to-gross domestic product (GDP) ratio easing to 60.2 percent, the lowest in over two years, compared to the 17-year high of 63.7 percent a year ago. This improvement in the debt ratio aligns with the country's faster economic growth, which was recorded at 5.9 percent in the third quarter (3Q) of 2023. The auction attracted substantial interest from investors, being 3.1 times oversubscribed with total tenders amounting to PHP46.4 billion. Consequently, the BTr was able to raise the full program amount of PHP15 billion from the auction.