Demand for short-dated government securities remained strong, as domestic investors snapped up debt papers at lower rates to lock in yields ahead of a widely anticipated quarter-point cut in the benchmark rate.

During the latest treasury bills (T-bills) auction on Monday, Feb. 9, 2026, the Marcos Jr. administration raised ₱37.8 billion, surpassing the planned offer of ₱27 billion.

Total bids reached ₱158.2 billion—nearly six times the amount of debt papers offered. This week’s total bids were lower than the ₱176.8 billion in tenders recorded in the previous T-bill auction on Feb. 2.

The Bureau of the Treasury (BTr) awarded ₱12.6 billion, exceeding the ₱9-billion offering for 91-day T-bills. Total tenders reached ₱55.7 billion, with the average rate settling at 4.492 percent, lower than the 4.579 percent recorded last week.

For 182-day debt papers, the BTr likewise raised ₱12.6 billion, exceeding the offered amount. Bids reached ₱56.6 billion, fetching an average rate of 4.578 percent—9.4 basis points (bps) lower than the previous auction’s 4.672 percent.

Meanwhile, the BTr also exceeded its ₱9-billion borrowing plan through a 364-day IOU, awarding ₱12.6 billion. Demand reached ₱45.9 billion, with the average rate inching down by 7.4 bps to 4.615 percent from 4.689 percent in the previous auction.

Ahead of Monday’s auction, PHP Bloomberg Valuation (PHP BVAL) Reference Rates for Feb. 9, 2026, showed the 91-, 182-, and 364-day T-bills quoted at 4.571 percent, 4.683 percent, and 4.737 percent, respectively.

Average auction rates across the board were lower than these secondary market benchmarks but remained slightly above the Bangko Sentral ng Pilipinas’ (BSP) policy rate of 4.5 percent.

Rizal Commercial Banking Corp. (RCBC) chief economist Michael Ricafort said domestic creditors may have locked in yields ahead of the widely expected easing by the BSP at its next policy meeting.

He said the weaker-than-expected gross domestic product (GDP) outturn in 2025 had raised expectations of a potential 25-bps rate cut at the Feb. 19 policy meeting, despite the central bank’s signal that it is nearing the end of its easing cycle.

For the first quarter of 2026, the government plans to borrow ₱324 billion through T-bills, accounting for 39.3 percent of total first-quarter domestic borrowing.

Treasury bonds (T-bonds) will make up the remaining 60.7 percent of the first-quarter program, with planned borrowings of ₱500 billion.

The Philippines relies more heavily on domestic borrowing through T-bills and T-bonds than on foreign sources, a strategy that taps local banks and creditors flush with liquidity while mitigating exposure to foreign exchange risks and volatility.