Quantcast
Latest Stories

91-day T-bill yield falls to 0.05%

By

Interest rates on treasury bills stayed below 1 percent during Monday’s auction, with the yield on the 91-day securities plunging to a new record low of 0.05 percent.

National Treasurer Rosalia de Leon said in an interview that the results were probably due to the excess liquidity in the domestic securities market as well as expectations that inflation would remain low.

Monday’s results were mixed, with the yield on the 182-day bill easing to 0.3 percent while that for the 364-day bill rising to 0.763 percent.

The latest rate for the three-month bill was 14.8 basis points lower than the previous average. For the six-month bill, it was 2.2 basis points lower and for the yearlong bill, it was 15.7 basis points higher.

The result for the benchmark bill was 24 basis points lower than the corresponding 0.29 percent for done deals at the private-run Philippine Dealing and Exchange Corp.

In the secondary market, prevailing rates for the 182-day bill was 27.5 basis points higher at 0.575 percent, and for the 364-day bills, 3.8 basis points lower at 0.725 percent.

The Bureau of the Treasury raised a total of P15.8 billion instead of the planned P15 billion. Investors tendered a total of P62.62 billion, or more than four times the total offering.

De Leon expressed pleasure with the market’s reception of the Treasury’s first auction for the year, particularly as the government has just started implementing a revised schedule of offerings.

Auctions are now held monthly—but with larger offer volumes—for both treasury bills and bonds. Previously, these were held every two weeks.

Asked when the government planned to issue global bonds this year, De Leon said there were no such plans yet. In the past several years, the government has been going to the international commercial market every January.

She said the plan for this year was to source 20 percent of the government’s funding deficit from overseas lenders.

“There is no need to do so at the moment, but that is part of the financing program because we have to maintain our presence in the foreign market,” De Leon added.

De Leon said the Treasury was likely to issue the so-called onshore dollar bonds rather than global bonds. The Treasury late last year issued $500 million worth of these dollar-denominated securities that were meant for domestic buyers.


Follow Us


Follow us on Facebook Follow on Twitter Follow on Twitter


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: auction , Bonds and t-bills , Philippines , Securities , treasury bills



Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
Advertisement

News

  • Pakistan library named ‘bin Laden,’ as memory fades
  • US teacher fired over comment on black president
  • Magnitude-7.5 earthquake shakes Mexican capital
  • Title of new Hillary Clinton book: ‘Hard Choices’
  • Filipinos, Dutch re-enact crucifixion of Christ
  • Sports

  • Nadal ousted by Ferrer in Monte Carlo quarters
  • Pacquiao shorts in Bradley fight sold for P1.7M in LA auction
  • Ryu pitches Dodgers past Giants
  • Alonso sets the pace in Chinese GP practice
  • Heat seek Three-peat but Spurs, Pacers top seeds
  • Lifestyle

  • Levine designs womenswear with help from fiancee
  • Gabriel Garcia Marquez, Nobel laureate, dies at 87
  • Ford Mustang turns 50 atop Empire State Building
  • Pro visual artists, lensmen to judge Pagcor’s photo contest
  • ‘Labahita a la bacalao’
  • Entertainment

  • Myx TV premieres Asian American ‘docu-series’
  • A nutty finale for ‘Scandal,’ TV’s craziest show
  • EXO postpones release of mini album ‘Overdose’
  • ‘X-men’ filmmaker slams ‘fabricated’ sex attack claims
  • Singer Chris Brown’s bodyguard on trial in DC
  • Business

  • US commerce secretary spells out economic facet of ‘pivot to Asia’
  • Italy sells luxury state cars on eBay
  • Asian shares mostly up in quiet trade
  • Dollar up in Asia on US jobs data, Ukraine deal
  • Barbie doll has a problem
  • Technology

  • Nasa’s moon-orbiting robot crashes down
  • Netizens pay respects to Gabriel Garcia Marquez
  • Nokia recalls 30,000 chargers for Lumia 2520 tablet
  • Facebook rolls out ‘nearby friends’ feature
  • Netizens seethe over Aquino’s ‘sacrifice’ message
  • Opinion

  • Editorial cartoon, April 17, 2014
  • A humbler Church
  • Deepest darkness
  • ‘Agnihotra’ for Earth’s health
  • It’s the Holy Week, time to think of others
  • Global Nation

  • Multicultural flock marks Good Friday in San Francisco
  • Las Vegas ‘Pinoy Pride’ fest hails Filipino heritage
  • Marking Jesus’ journey on Good Friday
  • Filipina accomplice arrested for fake bills in Malaysia
  • DoH denies Filipino nurse no longer positive for MERS virus
  • Marketplace