The government sold P25 billion worth of Treasury bills (T-bills) on Monday amid high demand, with total bids reaching P85.37 billion, the Bureau of the Treasury (BTr) reported.
The auction was nearly four times oversubscribed, prompting the BTr to double the accepted non-competitive bids for the 182-day tenor to P6 billion.
The BTr fully awarded the intended amounts: P7 billion for the 91-day T-bill, P10.5 billion for the 182-day T-bill and P7.5 billion for the 364-day T-bill.
Average yields on the T-bills continued their decline for the 16th consecutive week, led by expectations of further interest rate cuts.
The average yield for the 91-day tenor settled at 4.858 percent, while the 364-day tenor fetched 5.093 percent. The 182-day T-bill attracted the highest tenders at P33.45 billion, settling at an average rate of 5.044 percent.
Total tenders for the 91-day and 364-day tenors reached P29.56 billion and P22.36 billion, respectively.
Rizal Commercial Banking Corp. (RCBC) chief economist Michael Ricafort said the lower average auction yields followed a slight easing in comparable Philippine peso Bloomberg Valuation (BVAL) yields and were a continuing effect of the Bangko Sentral ng Pilipinas’ (BSP) surprise 25-basis point rate cut on Oct. 9, 2025.
The yields were also mostly lower ahead of the widely expected 25-basis point Federal Reserve rate cut on Oct. 29, 2025, which, according to Ricafort, could be matched by the BSP to maintain healthy interest rate differentials.
He said the recent volatility in the local stock market has partly steered investors toward relatively safer havens such as T-bills. This demand is compounded by investors’ desire to lock in yields before they further decline due to recent and possible future rate cuts.
