1.   Lower bill yields would cut the amount of debt to be retired at each auction, reducing borrowing requirements and the deficit.

2.   As the government tries to pay some of those arrears, it is increasing its domestic borrowing and depleting cash in the financial system, pushing up bill yields.

3.   Bills yields had dropped the past week on speculation the Reserve Bank might cut rates as soon as today, following its monthly board meeting Tuesday.

4.   Doubt over the election outcome is another reason why bill yields are so high, traders said.

5.   Higher U.S. Treasury bill yields tend to attract cash away from emerging markets like Mexico.

6.   A sharp decline in Philippine Treasury bill yields also buoyed the peso by tempering demand for dollars, traders said.