91-day T-bills up

THE average rate for the benchmark 91-day treasury bills (T-bill) climbed 4.1 basis points to 3.987 percent from the previous rate of 3.946 percent during Monday’s weekly sale of debt.

Tenders for the three-month securities were oversubscribed more than twice, with bids reaching P3.920 billion for a P1.5 billion offer.

The rate of the 182-day T-bills, however, declined 2.7 basis points to 4.295 percent from the previous yield of 4.322 percent.

Total tenders for the six-month debt papers reached P7.670 billion, more than twice the offer size of P3 billion.

The average rate of the 364-day debt notes likewise dropped to 4.459 percent from the 4.490 percent fetched during the previous auction or falling by 3.1 basis points.

The auction committee of the Bureau of the Treasury (BTr) made full awards across the board, raising P8 billion as planned out of the total tenders of P20.7 billion.

National Treasurer Roberto Tan said investors’ appetite for the 91-day debt papers pushed up the rate.

“There was too much demand for 91-day T-bills,” Tan said.

He nevertheless said the expected neutral stance of the US Federal Reserve on its policy rates would “sustain the low interest rate environment” as shown by the lower rates fetched for the 182- and 364-day debt notes.

Tan added that benign inflationary expectations were also behind the drop in rates for the two longer short-dated debt notes.

A total of P17.6 billion government securities are maturing this week, which also fuelled the demand.

“A lot of investors are looking for long-term investments,” he said. Dino Ng

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