Latest Stories

91-day treasury bill rate eases to 0.589%


Banks tried pushing short-term yields higher during the monthly auction for treasury bills Monday, but the government prevented an across-the-board increase in interest rates by rejecting a substantial volume of bids.

National Treasurer Rosalia de Leon said the government could afford to reject some bids given the favorable liquidity position of the government.

The cost of the government’s three-month borrowing became even cheaper, with the rate for the 91-day bills dropping 7.7 basis points to 0.589 percent.

There was a significant appetite for the three-month government securities as bids amounted to P5.9 billion as against the government’s offer of only P4 billion.

The 182-day bills fetched 0.897 percent, up 2.4 basis points from a month ago. Bids for the six-month debt paper reached P7.5 billion as against the P6 billion that the government was programmed to sell. However, the Treasury’s auction committee decided to accept only P4.85 billion to prevent a bigger increase in the six-month rate. Had the auction committee accepted the amount of bids stated under the borrowing plan, the interest rate for the six-month bills would have gone up by as much as 18.7 basis points to surpass the one-percent mark and hit 1.06 percent.

The cost of the government’s one-year borrowing fell, with the rate for the 364-day bills down 26.7 basis points to 0.933 percent.

Bids for the one-year debt securities amounted to P7.78 billion as against the government’s debt offering of P10 billion. The auction committee accepted only P5 billion worth of bids for the one-year securities to avoid an increase in the one-year interest rate. Had it accepted more bids, the one-year rate would have risen by as much as 23.1 basis points to exceed the one-percent mark at 1.43 percent.

“There was no reason for us to accept higher interest rates given the healthy cash position of the government,” De Leon told reporters after the auction, adding that the substantial liquidity in the domestic market was another reason why banks were in no position to seek higher yields.

De Leon said the banking system was awash in cash especially after the recent issuance by the central bank of a directive prohibiting retail funds from the special deposit accounts (SDAs). She said a substantial portion of the money going out of the SDA facility was being invested in government securities.

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: Business , rates , treasury bills

  • TruthHurts

    “De Leon said the banking system was awash in cash”

    But the entire country is not.

    The BSP appears to be insensitive to reality. Aren’t they aware that the poverty indicators have NEVER gone down? They better check their banking policies and recommend proper economic and fiscal reforms for the same, because whatever it is they are doing does NOT have any substantial impact on the poverty levels of the country. They can inundate us with volumes of financial reports and other dysfunctional accounting and banking or monetary policies, but the fact of the matter is, they have no significant impact on the country’s current overall economic growth and stability.

    And if they have no more policy tools to use or craft, then we better ask for their resignation or dissolution or we all collectively boycott the current monetary system of the country and switch to another system which is more effective and addresses our constitutional goals and civilization’s survival. This is the last remedy if things get worse and people become fed-up.

    • Chrisnadal19

      so the solution is to txt everyone to line up along BSP for the cash dole outs since they are awash with cash..great!

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


  • Security in place for Obama as police hope for ‘peaceful’ visit
  • Retired SC justice Lorenzo Relova; 98
  • Ligots fight 2nd forfeiture case
  • PH will be partly cloudy in afternoon, evening—Pagasa
  • Ex-COA chief nabbed for plunder
  • Sports

  • Sharapova advances to Stuttgart quarterfinals
  • Galedo caps ride of redemption
  • Beermen, Express dispute second semis slot today
  • Lady Agilas upset Lady Bulldogs in four sets
  • NLEX roars to 7th D-League win
  • Lifestyle

  • ‘Recovered’ Banksy works on display ahead of sale
  • Marinduque: Visiting the ‘palm of the ocean’
  • First at Vatican in 60 years
  • How Jing Monis Salon gave Krissy the pixie
  • Want to be a supermodel? Work on your inner beauty, says Joey Espino
  • Entertainment

  • Paul McCartney to play at Candlestick concert
  • Kristoffer Martin: from thug to gay teen
  • Has Ai Ai fallen deeply with ‘sireno?’
  • California court won’t review Jackson doctor case
  • Cris Villonco on play adapted from different medium
  • Business

  • PAL hailed for ban on shark fin cargo
  • BSP to change tint of P100 bill
  • Nielsen sees car buying boom in the Philippines
  • How author of best-seller exposed ‘one percent’ economic elite
  • Bangko Sentral readies new bank lending rules
  • Technology

  • Cloud strength helps Microsoft earnings top Street
  • Vatican announces hashtag for April 27 canonizations
  • Enrile in Masters of the Universe, Lord of the Rings?
  • Top Traits of Digital Marketers
  • No truth to viral no-visa ‘chronicles’
  • Opinion

  • Editorial Cartoon, April 25, 2014
  • No deal, Janet
  • Like making Al Capone a witness vs his gang
  • MERS-CoV and mothers
  • A graduation story
  • Global Nation

  • Only 4 Etihad passengers not accounted for
  • Abandoned in Malta,15 PH seamen return
  • Senator hopes PH will also get same vow
  • HK victims to get P115M; traders raised money
  • Afghan hospital guard kills 3 US doctors, including Fil-Am pediatrician
  • Marketplace