Philippines sells 91-day T-bills at 5.195% yield at auction

Philippines sells 91-day T-bills at 5.195% yield at auction

The Philippine government successfully sold 91-day Treasury bills (T-bills) at an auction held on July 22, 2025, with a yield of 5.195%. The auction, part of the government's ongoing efforts to manage its debt and fund its budget deficit, saw strong demand from investors.

The Bureau of the Treasury (BTr) offered P8 billion in 91-day T-bills, with total tenders reaching P36.58 billion. The average rate of the 91-day T-bill dropped by 5.3 basis points (bps) to 5.234%, with accepted yields ranging from 5.21% to 5.26% [1].

The government's auction of 91-day T-bills comes amidst expectations of a rate cut by the Bangko Sentral ng Pilipinas (BSP) on Thursday, August 28. The central bank is widely expected to reduce its target reverse repurchase rate by 25 bps to 5% at its upcoming meeting [1].

The BSP has been on an easing cycle since August 2024, lowering benchmark interest rates by a total of 125 bps. Governor Eli M. Remolona, Jr. has indicated that a rate cut is "quite likely" at the upcoming meeting and that further reductions could be considered for the remainder of the year [1].

The Philippine government is targeting to raise P185 billion from the domestic market this month, with P125 billion through T-bills and P60 billion via T-bonds. This week's auctions are the last ones for August [1].

The government's debt management strategy is crucial, given that its budget deficit is capped at P1.56 trillion or 5.5% of gross domestic product (GDP) this year [1].

References:
[1] https://www.bworldonline.com/banking-finance/2025/08/26/693506/t-bill-bond-yields-may-decline-with-bsp-expected-to-cut-rates/