The Bureau of the Treasury (BTr) partly awarded the one-year (364-day) Treasury bill (T-bill) in the auction on April 6, as rising interest rates continued to influence how the government borrows, even with strong demand from investors.
The treasury accepted just P4.8 billion for the 364-day tenor out of the planned P9.0 billion, even though bids reached nearly P7.0 billion.
The average yield climbed to 5.204%, the highest among the three, as investors asked for higher returns in exchange for lending money for a longer time.
By limiting awards for the one-year paper, the government is trying to avoid locking in higher borrowing costs while market conditions remain uncertain.
Short-term T-bills were fully awarded. The 91-day paper had an average yield of 4.985%, while the 182-day paper settled at 5.080%. These shorter-term options were more attractive to investors.
The government raised P22.8 billion, below its P27.0 billion target, after deciding to limit how much it would accept for longer-term loans.
Total bids reached P50.2 billion, almost double the amount offered, showing that there is still plenty of money in the market despite higher interest rates.
Demand was especially strong for the 91-day T-bill, which received P26.66 billion in bids. However, a large portion, P17.66 billion, was rejected, meaning the government chose not to accept all offers, even if demand was high.
Treasury trims long-term awards amid rising yields
For the 182-day tenor, bids reached P16.55 billion, and the full P9.0 billion offering was awarded.
Still, more than P7.5 billion in bids were turned down, showing that the Treasury remained selective as rates continued to rise.
Rising oil, inflation fears reshape rates outlook
For fintech companies, digital banks, and investors, the results show a changing environment. Short-term investments are still more appealing, while longer-term ones are becoming riskier due to rising rates.
As global uncertainties continue, the Treasury’s careful borrowing strategy reflects a broader goal: raising funds while keeping costs manageable.
This balance will play an important role in shaping liquidity and financial activity in the Philippines, including the growth of digital finance.
