Manila: The Bureau of the Treasury (BTr) upsized the award of Treasury bills (T-bills) during Monday's auction. Total tenders for the 91-day T-bills amounted to PHP42.7 billion. The Auction Committee accepted PHP24 billion with yield settling at 5.008 percent. For the 182-day T-bills, total tenders reached PHP84.09 billion. The committee accepted PHP21 billion, higher than the PHP15-billion initial offer. Yield, meanwhile, settled at 5.442 percent. Total tenders for the 364-day tenor reached PHP40.22 billion. The committee accepted PHP9.8 billion, also higher than the PHP7-billion initial offer. Yield was at 5.613 percent.

According to Philippines News Agency, Rizal Commercial Banking Corporation chief economist Michael Ricafort noted that T-bills' average auction yield mostly declined anew for the seventh consecutive week. Except for the 91-day T-bills, the average yield of the 182- and 364-day T-bills fell from last week's 5.545 percent and 5.723 percent. Ricafort stated, 'Treasury bill average auction yields again mostly slightly lower for the 7th straight week, after less hawkish signals from monetary authorities recently.'

Large bids in recent auctions could indicate increased demand and peso liquidity in the financial system following less aggressive monetary tightening signals. Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. previously mentioned that slower Philippine economic growth provides room for the BSP to adopt a less aggressive stance in controlling inflation.