Manila: Results were mixed during the Treasury bills (T-bills) auction on Monday as the Auction Committee decided to fully award bids for the 91- and 182-day T-bills while partially awarding the 364-day security. The 91- and 182-day T-bills fetched average rates of 5.004 percent and 5.032 percent, respectively. Meanwhile, acceptance of the 364-day T-bill was capped at 5.166 percent.

According to Philippines News Agency, last week, the average rates of the 91-, 182-, and 364-day T-bills settled at 4.900 percent, 4.948 percent, and 5.066 percent. The auction was 1.4 times oversubscribed, attracting PHP36.7 billion in total tenders. With its decision, the committee raised PHP21.7 billion of the P27 billion total offering.

"T-bill auction yields again higher after continued relatively lower total bids, with partial awards on the 364-day tenor amid higher bid yields," Rizal Commercial Banking Corporation chief economist Michael Ricafort said in a Viber message. "T-bill auction yields also went up amid recent signals on a possible BSP (Bangko Sentral ng Pilipinas) rate hike on the next rate-setting meeting on April 23, 2026 if inflation breaches above BSP's target range of 2%-4%, after the sharp increase in fuel prices due to the war Middle East that could lead to higher net imports, higher prices of affected goods and services that, in turn, could lead to slower economic growth," he added.

Reyes Tacandong and Co. senior adviser Jonathan Ravelas commented, "This tells us the market is still cautious. With global rates staying higher for longer, investors are demanding more yield, so the BTr is choosing to be selective rather than borrow at any cost." Ravelas further noted, "Rising rates reflect inflation and Fed uncertainty, not a funding problem. For now, government cash buffers remain healthy - but borrowing will stay expensive in the near term."