T-bill rates steady

MANILA, Philippines — The Bureau of the Treasury (BTr) awarded in full yesterday the P15 billion in Treasury-bills as interest rates barely moved ahead of the expected announcement of the new US Federal Reserve chief next week.

During yesterday’s auction, the 91-day T-bills fetched an average rate of 1.957 percent, 0.1 basis point lower than the previous rate of 1.958 percent.

The P6 billion offering was more than four times oversubscribed with total tenders amounting to P25.47 billion.

The average rate of 182-day securities remained steady at 2.457 percent. This was, however, higher than the 2.7589 percent secondary market rate for the same securities.

Total tenders amounted to P14.03 billion, almost thrice the P5 billion issuance.

Yield for the one-year T-bills inched up 3.3 basis points to 2.853 percent from 2.82 percent. This was also broadly similar to the securities’ secondary market rate of 2.8511 percent.

The P4 billion issuance was more than three times oversubscribed as tenders reached P12.63 billion.

“You see there is very strong demand...so I think, again, the preference for the short-end of the curve and the liquidity is very much around,” National Treasurer Rosalia De Leon told reporters after the auction.

According to De Leon, rates remained broadly steady as investors have adopted a wait-and-see attitude pending the appointment of a new Fed chief by early November. Current US Fed chairman Janet Yellen’s term expires in February.

“Everybody is more on a wait-and-see attitude for now, depending on the pronouncement from the Fed by Nov. 3. On what would be the Fed chair’s attitude, whether hawkish or dovish, in terms of the rate hike,” De Leon said.

She said the market is also looking for “fresh leads” amid muted inflation environment.

Meanwhile, De Leon said the Treasury is gearing up for the announcement of 10 “market makers” under its Enhanced Government Securities Eligible Dealers (GSED) Program by end-November.

Under the enhanced GSED program, traders who have shown capacity and commitment to support the development of the GS market will be evaluated by the Treasury and selected as market makers.