BTr raises P30.8-B from strong T-bill demand

The Bureau of the Treasury (BTr) successfully raised P30.8 billion from its Treasury bill (T-bill) auction last week, surpassing the initial P22 billion offer due to strong investor demand.

According to the BTr, total bids reached P118.9 billion, making the auction 5.4 times oversubscribed.

This prompted the Auction Committee to double the accepted non-competitive bids for the 91-day and 182-day securities to P5.6 billion, while P6.4 billion was accepted for the 364-day security.

The 91-day T-bill received P35.38 billion in total tenders, with the committee awarding P9.8 billion, exceeding the P7 billion initial offer. The yield settled at 5.118 percent.

Similarly, the 182-day T-bill saw P31.5 billion in total bids, with P9.8 billion accepted, also higher than its P7 billion initial offer. The yield for this tenor was recorded at 5.496 percent.

For the 364-day T-bill, bids reached PHP52.06 billion. The BTr awarded P11.2 billion, with an average yield of 5.697 percent.

Rizal Commercial Banking Corporation chief economist Michael Ricafort noted that T-bill yields have declined for the third consecutive week, following dovish signals from Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. regarding a possible 0.25-basis point policy rate cut as early as April 10, 2025.

Last week’s T-bill auction saw yields of 5.178 percent for 91-day papers, 5.548 percent for 182-day securities, and 5.773 percent for 364-day instruments.

Ricafort highlighted the unusually high demand for the 364-day T-bill, with total tenders reaching P52.06 billion.

He attributed this to investor expectations of imminent policy rate cuts, prompting them to secure current yields before further declines.