T-bill rates mostly rise ahead of economic data
The national government raised more than its initial target on Monday’s sale of Treasury bills (T-bills), even as investors sought slightly higher returns ahead of key economic data releases this week.
Auction results showed the Bureau of Treasury (BTr) was able to raise P25 billion from short-dated securities, which was greater than the planned issuance of P22 billion.
The offering drew strong demand, with total bids reaching P99.1 billion. This was 4.5 times bigger than the original size of the offer.
The 91-day T-bill fetched an average rate of 4.874 percent, up from last week’s 4.858 percent.
The average yield for the 182-day T-bill was set at 5.026 percent, slightly down from the previous offering’s 4.828 percent.
Creditors got an average yield of 5.099 percent for the 364-day debt note, higher than the 5.097 percent last week.
The slightly higher returns come as investors await inflation and gross domestic product (GDP) data this week.
“The T-bill average auction yields corrected slightly higher ahead of the latest local inflation data, which is expected to be slightly higher,” said Michael Ricafort, chief economist at Rizal Commercial Banking Corp.
He added, however, that upcoming GDP data could serve as an offsetting factor, as signs of slower growth may strengthen the case for further interest rate cuts.
The October 2025 inflation rate will be released on Wednesday, Nov. 5, followed by the GDP report on Friday, Nov. 7.
This year, the government plans to borrow P2.6 trillion from lenders to plug a projected budget deficit of P1.6 trillion, equivalent to 5.5 percent of GDP. The funding drive is expected to push the debt stock to P17.36 trillion by year’s end.
