The national government has successfully borrowed P24 billion in the domestic market Monday, Feb. 15 after interest rates declined across the board.
At an auction, yield of 91-day Treasury bills (T-bills) averaged at 0.845 percent, slightly lower from last week’s 0.846 percent. The 182-day T-bills also fetched a lower interest rate of 1.046 percent from 1.094 percent, while 364-day T-bills settled at 1.416 percent, down from 1.446 percent in the previous week.

The auction was more than four-times oversubscribed with total bids of P88.6 billion, prompting the government to upsize its borrowing ceilings for the three- and six-month IOUs by P4 billion.
The Treasury originally programmed a P20 billion borrowing for this week. National Treasurer Rosalia De Leon said liquidity continues to overflow.
“Market sees spike in prices as temporary with supply constraints and inflation dialing back to middle of target next year,” De Leon said. The government has set an inflation target of 2.0 percent of 4.0 percent until 2022.