T-bills awarded in full

MANILA, Philippines — Short-term government debt papers on offer were awarded in full yesterday amid market’s demand for higher rates.

The Bureau of the Treasury (BTr) raised P20 billion from yesterday’s Treasury bill (T-bill) auction which saw bids hitting P42.43 billion, making the offer more than twice oversubscribed.

The average yield for the benchmark 91-day T-bills rose to 1.232 percent from 1.139 percent last week, while the rate for the 182-day debt paper rose to 1.527 percent from 1.316 percent in the previous week.

Yield for the 364-day debt paper, meanwhile, rose to an average of 1.990 percent from 1.852 percent in the previous week.

National Treasurer Rosalia de Leon said the market has been asking for higher yields for the past few weeks as it expects inflation to continue rising well into the second quarter.

Yields of local treasuries also continued to track the upward trend in US Treasuries that have been responding to the promise of a strong economic rebound in the US in line with the major stimulus package.

“Rates have been rising with expectation of higher inflation seen to peak in the second quarter.  Domestic rates also trended up as US Treasuries adjust upwards with good prospects of strong rebound with stimulus package,” de Leon told reporters, adding that “supply-side constraints also push rates as we also see oil prices increasing.”

De Leon said the BTr would not open the tap facility that allows dealers to access securities after the primary auction.