The national government has successfully borrowed funds through short-term loans amid relatively stable interest rates.

On Monday, Sept. 11, the Bureau of the Treasury executed its auction by fully awarding P15 billion worth of Treasury bills, with demand for three-, six-, and 12-month IOUs totaled P51.814 billion.

Although the interest rate for the 91-day Treasury bill saw a slight increase to an average of 5.575 percent compared to the previous week's 5.552 percent, the government still managed to raise P5 billion, with total tenders reaching P14.715 billion.

Encouragingly, the yield for the 182-day T-bill slightly decreased to 5.960 percent, allowing the national government to fully award the P5 billion program.

Similarly, the interest rate for the 364-day T-bill declined from 6.198 percent to 6.190 percent in the previous week.

As a result of the lower interest rate, the Treasury bureau secured P5 billion in loans, with total tenders amounting to P21.116 billion.

T-bills are a type of investment offered by the government. They are IOUs issued by the Treasury bureau, where they borrow money from individuals, banks, and other investors for a fixed period.

Investors can buy Treasury notes, which means they lend money to the government. In return, the state promises to pay them back the full amount invested, plus interest, when the T-bill matures.

The duration of a T-bill can range from a few months to a year. The government sets a fixed interest rate, so investors know exactly how much they will earn when the T-bill reaches its maturity date. 

These investments are considered low-risk because they are backed by the government, making them a safe option for conservative investors.

For September, the national government has planned to borrow P180 billion from the local market in September.

The latest financing program is 30 percent lower than the target of P225 billion set for this month.