Investors pressed for an increase in Philippine benchmark interest rates for most short-term loans a day before the release of inflation data, which is expected to pick up due to the effects of Typhoon Carina.

At the Treasury Bureau’s auction on Monday, Aug. 5, the national government successfully raised P20 billion through the sale of 91-, 181-, and 364-day IOUs amid investors seeking higher returns for buying those securities.

The total bids received were P47.3 billion, more than twice the target amount.

The average interest rate for the three-month papers increased from 5.779 percent the previous week to 5.828 percent.

The government accepted P6.5 billion worth of bids for the 91-day Treasury bills, even as investors were willing to buy as much as P12.791 billion of the debt papers.

Furthermore, the national government successfully awarded the full amount of P6.5 billion for the 182-day T-bills, with total bids reaching P12.110 billion.

The interest rate for the six-month T-bills also increased from 6.014 percent in the previous week to 6.062 percent.

The yield for the 364-day T-bill, on the other hand, declined to 6.074 percent from 6.108 percent. Treasury accepted P7 billion worth of bids. Investors, however, were willing to buy more, as tenders reached P22.397 billion.

Before Monday's auction, the PHP Bloomberg Valuation Reference Rates showed that the 91-day, 182-day, and 364-day T-bills were quoted at 5.787 percent, 6.064 percent, and 6.163 percent, respectively, in the secondary market.

The inflation readout for June declines to 3.7 percent, after rising for four months, due to lower energy prices.