T-bill, bond rates likely to gain anew

MANILA, Philippines — Rates for government securities are expected to rise next week due to uncertainties on how the economy performed in the third quarter, traders said.

Bond traders expect rates for Treasury bills (T-bills) to move sideways, while yields for the reissued 10-year Treasury bonds (T-bonds), with a remaining term of nine years and eight months, may go up by as much as 21.1 basis points next week.

“We expect rates for T-bills to move sideways on recovering demand for short-term debt papers. The 10-year T-bonds may fetch yields from 4.9 percent to 5.15 percent,” a trader said.

“Unlike in previous weeks, the Treasury can anticipate a steady rates moving forward. Investors have priced in by now the impact of the Fed’s taper, and it may no longer influence the bids that they will file,” the trader said.

Another trader said investors would closely monitor the results of the third quarter gross domestic product (GDP) growth scheduled to be released on Tuesday.

“What investors will look out for next week would be the results of the country’s GDP data for the third quarter,” the trader said.

The Treasury will auction P15 billion worth of T-bills tomorrow and on Tuesday will sell P35 billion in reissued 10-year T-bonds.

For this month, the Treasury plans to raise P200 billion through the sale of T-bills and T-bonds.