T-bills fetch lower rates

MANILA, Philippines — Short-term government securities continued to fetch lower rates across-the-board amid strong liquidity in the financial system, according to the Bureau of the Treasury (BTr).

During yesterday’s auction, the BTr fully awarded P5 billion worth of 91-day Treasury bills(T-bills) at an average rate of 1.221 percent, 11.4 basis points lower than the 1.335 percent recorded in the previous auction.

The offering was more than five times oversubscribed, with total tenders amounting to P25.51 billion.

Likewise, the average rate for 182-day securities declined by 15.1 basis points to 1.454 percent from 1.605 percent last week.

This prompted the BTr to fully award the P5 billion offering which fetched total tenders amounting to P23.585 billion.

Lastly, rates for the 364-day debt papers averaged at 1.749 percent, 0.9 basis point down from last week’s 1.758 percent.

The P10 billion offering was fully awarded, while total tenders reached P27.31 billion.

Overall, yesterday’s auction was able to garner P76.41 billion in total bids, P20 billion of which was accepted.

Asked if the announcement of a return to modified enhanced community quarantine in Metro Manila and neighboring provinces had an impact on the market, National Treasurer Rosalia de Leon said there was none.

De Leon said government securities continued to get lower rates and strong demand amid ample liquidity in the financial system.

Furthermore, she said investors still prefer to park their funds in low-risk government securities.

“Overwhelming subscription and continued fall in rates with surplus liquidity and preference for haven assets. This is in spite of the RTB (Retail Treasury Bond) issue,” de Leon said. She said the market is still “oozing with cash.”

Earlier, de Leon said money raised from the government’s ongoing RTB sale has already exceeded the record-high of P310.8 billion issued early this year.

This feat was achieved in less than one week from the launch of the RTB offering on July 16, with the help of the Treasury’s online selling platforms, including the newly launched Bonds PH mobile application.

Meanwhile, de Leon said the auction committee decided to open the tap facility for one-year government securities, with a total offering size of P5 billion.