The government successfully secured P6 billion through the sale of 91-day Treasury bills, a key component of its funding strategy. Investor demand significantly exceeded expectations, reaching a total of P30.985 billion for this short-term debt instrument. This robust appetite allowed the average rate to decrease slightly to 4.731%, a reduction of 2.8 basis points from the previous auction.
Alongside the 91-day bills, a full allocation of P7 billion was awarded for 182-day Treasury bills, fueled by P28.9 billion in bids. However, the rate for these six-month bills experienced a minor increase, rising by 3 basis points to 4.903%. This subtle shift reflects the dynamic interplay of market forces and investor sentiment.
Demand remained strong for longer-term bills as well, with the Bureau of the Treasury fully selling the planned P7 billion in 364-day securities. Bids for these one-year instruments totaled P27.571 billion, and the average yield edged down by 3.8 basis points to 4.924%.
Looking beyond the bills, the reissued seven-year bonds, last auctioned in April of the previous year, generated P35 billion for the government at an average rate of 5.779%. This rate was considerably higher than the bond’s 3.75% coupon, indicating a shift in market conditions and investor expectations.
Similarly, the reissued ten-year Treasury bond, auctioned in December, raised P15 billion at an average rate of 5.876%. This also surpassed the bond’s original coupon rate of 6.375%, demonstrating a broader trend of increasing yields in the longer-term debt market.
The Treasury aims to raise a substantial P268 billion from domestic sources this month, strategically dividing the target between P106 billion in Treasury bills and P160 billion in Treasury bonds. This ambitious goal underscores the government’s reliance on local investors to fund its ongoing programs and initiatives.
