T-bill yields to sustain rise

MANILA, Philippines — Yields from Treasury bills (T-bills) on offer this week are expected to climb further as government securities track the continued rise in US Treasuries.

The Bureau of the Treasury (BTr) is raising P20 billion today from offers of the short-dated government debt papers: P5 billion each from the 91-day and P182-day tenors and P10 billion for the 364-day tenor.

Bond traders said rates in short-term securities may rise from as much as 10 up to 15 basis points during today’s auction.

“Yields may rise from 10 to 15 basis points still tracking US Treasuries,” a trader said.

Another trader said demand may still be “ample” with the offer still seen to be oversubscribed considering these are short-term debt papers that carry less risk.

During last Monday’s offer, the average yield for the benchmark 91-day T-bills rose to 1.139 percent percent from 1.04 percent the previous week, while the rate for the 182-day debt paper rose to 1.316 percent from 1.226 percent in the previous week.

Yield for the 364-day debt paper, meanwhile, rose to an average of 1.852 percent from 1.680 percent in the past week.

Raised as expected were P5 billion each from 91-day and 182-day T-bill offers, and P10 billion from the 364-day offer from total tenders of P44 billion.

BTr wants to raise P160 billion from the local bond market this month even with rising rates to take advantage of ample liquidity in the market.

This comprises P20 billion in short-dated debt papers to be auctioned every Monday for a total of P100 billion in March.

To be auctioned every other Tuesday, meanwhile, are P60 billion worth of treasury bonds: P30 billion for the seven-year securities and another P30 billion for the 10-year debt papers.