The Bureau of the Treasury (BTr) on Monday raised more than the initial offering of PHP20 billion during the Treasury bills (T-bills) auction.
"The auction was 2.3 times oversubscribed, attracting P46.7 billion in total tenders. As a result, the committee decided to double the accepted volume of non-competitive bids for the 182-day T-bills," the BTr said in a statement.
Total tenders for the 91-day debt paper amounted to PHP15.5 billion, with the committee accepting PHP6.5 billion as originally offered.
Average yield rose to 5.717 percent from last week's 5.698 percent.
The BTr meanwhile, raised PHP9.1 billion from the 182-day T-bills, which was offered for PHP6.5 billion.
Total bids amounted to PHP17.5 billion with yield settled at 5.978 percent, slightly higher than last week's 5.968 percent.
Also, PHP7 billion was raised from a total of PHP13.7 billion bids for the 364-day T-bills. This tenor was offered for PHP7 billion.
Average yield for the longest tenor was almost unchanged at 6.072 percent from 6.073 percent during the previous auction.
"Reiterated signals on possible local policy rate cut of 0.25 (basis points) as early as August 2024 and possible 0.50 local rate cuts in 2024 led to some greater investor demand for longer-dated bonds and other fixed income securities," Rizal Commercial Banking Corporation chief economist Michael Ricafort said in a Viber message.
"Furthermore, odds of Fed rate cut/s increased recently after softer-than-expected U.S. inflation data and recent dovish signals by Fed Chair Powell on possible Fed rate cut even before U.S. inflation reaches the 2 percent target amid easing inflation or disinflation trend (contributed to higher demand for longer-tenor papers)," he added.
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