The Bureau of the Treasury (BTr) has successfully awarded bids for Treasury bills (T-bills) during the final auction of the year.
This allowed the government to raise the full programmed amount of P15 billion for the said offer.
The results highlight sustained investor confidence in government securities, particularly for those with short-tenors, as the year draws to a close.
At Monday’s auction, the BTr issued 91-day, 182-day and 364-day T-bills at average rates of 5.818 percent, 5.975 percent and 5.977 percent, respectively.
These rates came in lower than prevailing secondary market levels, reflecting favorable conditions for short-term government borrowing.
The auction attracted strong investor demand, with total tenders reaching P46.7 billion, more than three times oversubscribed relative to the P15 billion on offer.
The strong reception in Monday’s auction signals market optimism as the year ends, with expectations of potential rate cuts both locally and globally.
According to 2tradeasia’s investor’s note, market consensus points to possible 25 basis points rate cut from the local monetary board’s meeting this week, bringing benchmark rate to 5.75 percent from the current six percent. “Part of the support will be on inflation remaining within target and economic growth,” 2tradeasia said.
