T-bills up as banks seek higher returns

MANILA, Philippines - Yields on Treasury bills jumped across the board after banks sought higher returns during yesterday’s auction by the Bureau of Treasury.

The rate for the benchmark 91-day bills rose to 0.900 percent from 0.217 percent in the previous auction.

Demand for the three-month debt paper was strong as bids reached P9.42 billion or more than doubled the P4-billion offer.

The government, sticking to its borrowing program, accepted only P4 billion worth of bids.

The 182-day bills rose 60.2  basis points to one percent from only 0.398 percent.

Bids for the six-month debt papers amounted to P10.1 billion, slightly exceeding the programmed offer of P6 billion.

The interest rate for the 364-debt paper, meanwhile, more than doubled to 1.25 percent from only 0.602 percent with bids hitting P16.31 billion.  The government, however, accepted only P10 billion.

National Treasurer Rosalia de Leon attributed the steep rise in interest rates to the participation of not only local financial institutions but overseas players as well amid the peso’s appreciation.

Meanwhile, De Leon said the government received P17 billion in dividends from government-owned and controlled corporations or P5-P7 billion more than the full-year program of P10-12 billion.

Including all other forms of remittances, the Aquino administration received nearly P28 billion from 38 GOCCs, higher than the P19.2 billion remitted last year.

This year’s dividends exceeded collections in 2012 with eight GOCCs remitting at least P1 billion to the government.  Among these agencies include the Land Bank of the Philippines which turned over the biggest amount at P6.24 billion, followed by the Bases Convesion Development Authority (P2.31 billion), Development Bank of the Philippines (P3.17 billion), Manila International Airport Authority (P1.547 billion), Philippine Amusement & Gaming Corp. (P1.4 billion), Philippine Ports Authority (P1.034 billion), Philippine Reclamation Authority (P1 billion) and Power Sector Assets and Liabilities Management Corp. (P1 billion).