Short-term interest rates dropped at Monday’s (March 29) auction, as investors flocked to safe haven assets, the Bureau of the Treasury said.
Yields for three- and six-months as well as one-year IOUs declined that allowed the government to raise P20 billion as planned.
The 91-day Treasury bills (T-bills) fetched an average rate of 1.269 percent, lower compared with 1.336 percent last year. The 182-day T-bills also went down from 1.718 percent to 1.609 percent, while 364-day T-bills slightly dropped to 1.926 percent from 1.997 percent.

Asked if investors were no longer worried about accelerating inflation, National Treasurer Rosalia de Leon said this concern is from supply side constraints that require non-monetary measures.
She also said that sufficient liquidity remains in the domestic market. The auction was more than three-times oversubscribed with total tenders reaching P64 billion.