The Bureau of the Treasury (BTr) raised P14.26 billion in its latest round of Treasury sale Monday, out of a planned P15 billion.
The Treasury bills offered tenors of 91, 182 and 364 days at a block of P5 billion each. Only the 182-day tenor got partially awarded.
The 91-day T-bills fetched a coupon of 6.149 percent, with banks bidding as high as 6.249 percent and as low as 6.04 percent.
The 182-day IOU fetched a coupon of 6.33 percent, with banks bidding as high as 6.399 percent and as low as 6.245 percent.
The one-year T-bill fetched a rate of 6.479 percent, with offers ranging to a high of 6.525 percent and a low of 6.4 percent.
The BTr said the sale was 1.6 times oversubscribed as tenders reached P23.4 billion.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said this is the fifth straight week of treasury yields rising.
“It is worth noting that the Treasury bill auction yields were already adjusted higher to be better aligned with the one-year/over night average auction yield at 6.14 percent recently,” he said.
“Treasury bill auction yields also increased in recent weeks to also be better aligned with the key local policy rate at 6.25 percent,” he added.
Ricafort, however, said most T-bill auction yields are now “unusually much higher than the comparable short-term PHP BVAL (Bloomberg Valuation benchmark) yields.”
He also noted the current yields prices in “reduced odds of another Fed rate hike” and a possible start of a rate cut by July 2024.
