The Philippines’ Bureau of the Treasury awarded ₱37.8 billion ($636 million) in Treasury bills on Monday, above the ₱27 billion program, amid strong investor demand and lower yields across all tenors.

Tenders reached ₱126.6 billion, indicating a nearly 5:1 bid-to-cover ratio. The Treasury awarded ₱12.6 billion each in its 91-day, 182-day, and 364-day offerings.

Average yields declined to 4.723% for the 91-day tenor, 4.817% for the 182-day, and 4.888% for the 364-day. All were below the previous auction’s levels of 4.731%, 4.850%, and 4.916%, respectively.

The oversubscription allowed the Treasury to increase its award size, reflecting ample liquidity in the domestic money market and sustained demand for short-term government securities despite recent peso volatility.

The peso has traded near record lows against the US dollar in recent sessions, but investors appear unfazed, with analysts citing contained inflation expectations and a favorable growth outlook. The World Bank recently projected the Philippines to be the third fastest-growing economy in East Asia and the Pacific through 2027.

Despite the peso’s recent weakness, demand for short-term sovereign paper remains robust, supported by ample domestic liquidity and expectations that the Bangko Sentral ng Pilipinas may begin shifting toward a more accommodative stance later in the year.

Analysts noted that easing inflation, dovish BSP signals, and the Philippines’ strong growth outlook have helped anchor demand across the short end of the curve. The World Bank recently reaffirmed that the Philippines is on track to become the third fastest-growing economy in East Asia and the Pacific through 2027, a backdrop that has strengthened confidence in peso-denominated government securities despite external volatility.

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