T-bill rates up across the board

MANILA, Philippines — Treasury bill (T-bill) rates rose across the board amid healthy demand from investors, according to the Bureau of the Treasury (BTr).

Interest rates for the shortest dated securities maturing in 91 days fetched an average rate of 3.225 percent, 0.7 basis points higher than the 3.218 percent recorded in the previous auction.

This was also slightly higher than the secondary market rate for the same securities, which settled at 3.2137 percent before the auction closed.

Total tenders for the 91-day T-bills amounted to P6.225 billion, higher than the P4 billion offering.

The average rate fetched by the 182-day T-bills rose by 3.1 basis points to 4.101 percent from last week’s level of 4.07 percent. This was likewise slightly higher than the 4.0903 percent secondary market rate for the same tenor.

The auction was oversubscribed, with total tenders reaching P11.601 billion or more than twice the P5 billion issue size.

Rates for the one-year debt papers also averaged 4.899 percent, inching up by two basis points from the 4.879 percent recorded last week. This was also 3.42 basis points up from the secondary market rate of 4.8648 percent.

Healthy demand met the auction as total bids reached P9.635 billion, exceeding the P6 billion offer volume.

According to National Treasurer Rosalia De Leon, the auction committee decided to make a full award as the rates are within the BTr’s estimates.

“The rates are within our own assessment,” De Leon said.

De Leon said the results of the auction reflected the market’s continued preference for the short-end of the curve.

“The preference is still on the low end. And there’s also liquidity if you notice because we had in August redemptions amounting to about P91 billion,” De Leon said.