MANILA – The Bureau of the Treasury (BTr) on Monday fully awarded bids for the Treasury bills (T-bills).
The 91-, 182-, and 364-day T-bills fetched average rates of 5.884 percent, 6.095 percent and 6.226 percent, all lower than previous auction results.
Last week, the average rates for the 91-,182-, and 364-day T-bills settled at 5.973 percent, 6.266 percent, and 6.339 percent, respectively.
The auction was nearly three times oversubscribed with total bids reaching PHP44.4 billion.
The BTr raised the full program of PHP15.0 billion for the auction.
In a comment, Rizal Commercial Banking Corporation chief economist Michael Ricafort said Treasury bill auction yields corrected lower week-on-week.
“This is similar to the week-on-week downward correction in PHP Bloomberg Valuation Service (BVAL) yields after US Treasury yields also corrected lower after better US inflation data at a new 2-year low of 3 percent in June 2023, from 4 percent in the previous month and nearing the Fed’s target of 2 percent,” Ricafort said.
“The lower T-bill auction yields could have also been supported by the strongest peso exchange rate versus the US dollar in more than three months recently, thereby could reduce import prices and overall inflation that could still ease further due to higher base effects,” he added.
On July 13, the peso closed at 54.51 to a US dollar, its best performance since April 5. (PNA)
