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Business

T-bill rates mixed on Omicron worries

Elijah Felice Rosales - The Philippine Star
T-bill rates mixed on Omicron worries
The Bureau of the Treasury yesterday awarded in full the P10 billion T-bills on offer, looking to end the year with complete issuances of the remaining debt papers on board.
Bureau of the Treasury FB page

MANILA, Philippines — Treasury bill rates ended mixed in yesterday’s auction, as jitters over the Omicron variant sent investors swarming the shorter-dated securities.

The Bureau of the Treasury yesterday awarded in full the P10 billion T-bills on offer, looking to end the year with complete issuances of the remaining debt papers on board.

Total tenders reached P41.285 billion, oversubscribing the auction by 4.12 times, with investor preference leaning toward the 91-day and 182-day tenors.

Yield for the 92-day T-bills dipped 0.9 basis point to 1.155 percent, while the 183-day tenor slid 0.6 bp to 1.443 percent.

On the other hand, the rate for the 365-day papers rose 0.7 bp to 1.643 percent.

National Treasurer Rosalia de Leon said investors were avoiding risks posed by the spread of the Omicron variant and the November inflation results.

“Full award on all tenors, [as] rates slightly lower for 92- and 183-day and less than a bp higher for 365-day,” she said in a text message to reporters.

“Bias continues on short end, with Omicron uncertainties, and [as] market awaits the November inflation print,” she added.

According to the Bangko Sentral ng Pilipinas (BSP), inflation in November could slow for a third consecutive month on the appreciation of the peso and rollbacks in domestic petroleum prices. The BSP expects the November print to settle between 3.3 and 4.1 percent.

Inflation in October slowed to 4.6 percent from 4.8 percent in September, due to the price cuts recorded in food and non-alcoholic beverages. However, inflation has averaged 4.5 percent for the year, breaching the BSP’s target range of two to four percent.

For December, the Treasury plans to raise P70 billion through the auction of T-bills and Treasury bonds, tempering the borrowing program from November’s P200 billion to keep the country’s debt pile within manageable levels.

BUREAU OF THE TREASURY TREASURY BILL
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