The Bureau of the Treasury (BTr) fully awarded bids for Treasury bills (T-bills) at slightly lower rates during Tuesday's auction.

The 91-, 182-, and 364-day T-bills fetched average rates of 5.546 percent, 5.650 percent, and 5.655 percent, respectively.

Last week, the average yield of the 91-, 182-, and 364-day T-bills settled at 5.573 percent, 5.667 percent, and 5.697 percent.

The auction was 2.8 times oversubscribed with total bids reaching P70.3 billion.

With its decision, the Committee raised the full program of P25 billion for the auction.

"The latest Treasury bill average auction yields were mostly slightly lower, after the more dovish signals by local monetary authorities recently on possible larger 0.75 (basis points) additional BSP rate cuts for the rest of 2025 after the latest inflation data eased to 1.4 percent, the lowest since November 2019, that could help curb further peso appreciation versus the US dollar," Rizal Commercial Banking Corporation chief economist Michael Ricafort said.

"Treasury bill an average auction yields slightly eased after generally peaceful election results," he added.

Ricafort said lower political risk equals lower risk premium and lower Treasury bill yields.

"All points to lower borrowing costs for the government," he said.

BTR PHOTO