Benchmark yields for short-term loans jumped after the central bank raised its policy rates last week, forcing the Bureau of the Treasury to partially borrow on Monday, Feb. 20.

At an auction of Treasury bills, the national government raised a total of P13.05 billion, below the P15 billion program. Total demand reached P30.32 billion

The 91-day Treasury bill rate increased to 4.413 percent from 4.230 percent last week.

The Treasury sold the P3.55 billion worth of three-month debt papers, lower than the P5 billionoffer. Investors, however, were asking for P7.33 billion of the government security or IOU.

Yield on the 182-day T-bill also increased to 5.060 percent from the previous 4.949 percent as investors were willing to buy P10 billion of the six-month IOUs. The government awarded only P4.5 billion, less than the P5 billion program.

Lastly, interest rate on the one-year IOU has risen to 5.455 percent from 5.298 percent last week.

The one-yield debt papers attracted P12.988 billion worth of bids, and the government accepted P5 billion as planned.

National Treasurer Rosalia V. De Leon said yields sought by lenders have risen in the aftermath of the 50 basis points increase in the BSP’s policy rates and the upward revision of its 2023 inflation outlook.