Dovish signals cut treasury's borrowing costs

Global trade jitters and the impending expiry of US tariff pauses failed to deter investors, as the Marcos administration’s debt sales saw robust demand, allowing the Bureau of the Treasury to raise ₱28.4 billion and continue its four-week trend of lower borrowing costs.

- By DERCO ROSAL

During the sale of three-month, six-month, and one-year debt securities, the treasury raised ₱28.4 billion from domestic creditors through the sale of short-term debt on Monday, July 28, surpassing its target for the fourth consecutive week since July 7.

Its ₱25-billion program received a total of ₱103.5 billion in bids, more than four times the amount offered. This week’s demand was higher than last week’s ₱92.2 billion in bids for similar offerings.

The Treasury fully awarded its ₱7-billion offer for 91-day treasury bills (T-bills). Total tenders reached ₱37.7 billion. The average rate was 5.388 percent, 3.4-basis points (bps) lower than the previous week’s 5.422 percent.