Investors drive down gov't borrowing costs

Domestic investors snapped up the government’s short-term debt papers this week, allowing the Marcos administration to raise an additional P25 billion at lower borrowing costs, as investors locked in yields ahead of further rate cuts.

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During the latest Treasury bills (T-bills) auction on Sept. 8, the Bureau of the Treasury (BTr) fully awarded its planned fundraising, with total bids reaching P156.4 billion—more than six times the amount of debt paper offered.

This week’s total bids were higher than the P125.5 billion in tenders from the previous T-bill auction on Sept. 1.

The government fully awarded the P8.5 billion offering for 91-day T-bills. Total tenders reached ®37.2 billion. It fetched an average rate of 5.046, 12.7 basis points (bps) lower than last week’s rate of 5.173 percent.