Latest Stories

Treasury bill yields inch up; 91-day rate at 0.217%


MANILA, Philippines — The historic-low interest rates in the previous auction proved unsustainable as the yields on treasury bills on Monday jumped across the board after banks sought higher returns.

The Bureau of the Treasury was forced to reject some bids for six-month and one-year debt instruments to avoid a big jump in interest rates. The rate for the benchmark 91-day bills rose 17.7 basis points to 0.217 percent yesterday from the 0.04 percent in the previous monthly auction.

Demand for the three-month debt paper was strong as bids reached P5.16 billion compared with the P4 billion on offer. However, Deputy National Treasurer Eduardo Mendiola said some of the bids were not competitive as the rates sought were even higher than the latest yields in the secondary market. As such, the government accepted only P4 billion worth of bids, thus sticking to the borrowing program.

The 182-day bills fetched 0.398 percent, up 18.2 basis points from 0.216 percent.

Bids for the six-month debt papers amounted to P6.01 billion, slightly exceeding the offering of P6 billion.

Notwithstanding the over-subscription, the Treasury accepted only P4.75 billion worth of bids to avoid an even higher rate. Had it accepted more bids, the rate could have reached a high of 0.593 percent.

The rate for the 364-day bills rose 29.5 basis points to 0.602 percent from 0.307 percent. Tenders for the one-year debt paper reached P4.46 billion as against the government’s offering of P10 billion.

The Treasury accepted only P3.1 billion and rejected the rest to prevent a bigger increase. The rate for the one-year debt securities could have hit a high of 0.91 percent had the government agency accepted all bids.

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: Banking , Business , 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


  • 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
  • 14 killed in car bombing in Homs
  • 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

  • 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
  • WHO warns vs spread of MERS-Cov, urges vigilance in taking precautions
  • Marketplace