Latest Stories

91-day T-bill rate now at 0.15%

Yields on all maturities fall to historic lows


Interest rates on treasury bills fell Monday to historic lows for all three maturities following the continued favorable economic situation and ample supply of cash in the financial market.

After the regular auction held by the Bureau of the Treasury, the yield on the benchmark 91-day bills settled at 0.15 percent. The rate for the 182-day securities slid to 0.45 percent while that for the 364-day paper eased to 0.68 percent.

Data from the Treasury showed that these were the lowest rates seen in records that go as far back as 1987.

The latest rates were respectively 31.3 basis points, 25 basis points and 27 basis points lower than average rates recorded in the previous auction held two weeks ago.

Monday’s result for the benchmark bill was 25 basis points lower than the 0.4-percent average for done deals at the floor of Philippine Exchange and Dealing Corp.

In the secondary market, the prevailing rate for the 182-day bills was 22.5 basis points higher at 0.675 percent and for the 364-day bills, 14.5 basis points higher at 0.825 percent.

The Treasury raised a total of P7.5 billion as planned. Investors tendered a total of P21.91 billion, or almost thrice the total offering.

Deputy Treasurer Eduardo S. Mendiola said in an interview that all macroeconomic variables, including the inflation rate, remained favorable such that investors had “no reason at all to bid up.”

According to the National Statistics Office, inflation stood at 3.1 percent year on year in October, bringing the 10-month average to 3.2 percent.

“Tenders show the liquidity in the (domestic) market despite no maturities this week,” Mendiola said, meaning there were no government securities up for redemption. “There is an ample supply of funds running after financial instruments,” he added.

Mendiola said there was no decision yet on whether to proceed with a planned bond exchange exercise in the first week of December. “This will depend on the advice from a team that is overseeing the primary market’s adoption of globally accepted pricing standards, which the secondary market is already using,” Mendiola said.

He added that the planned debt swap is meant to help in the transition to a single-pricing regime in the financial sector.

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: Bonds and t-bills , Interest Rates , Philippines , treasury bills

  • JJF724

    PNOY’s admin break again his low intest rate record…  lots of savings…  Galing talaga ni PNOY!

  • http://twitter.com/alfs_alfs Pons Corpuz

    This is probably the best time for the government to pre-pay its high yield debt and replace it with lower interest loans. I believe this is the direct effect of credit rating upgrade of the Philippines. Lower interest rate means lower burden for the Filipino people. This is good, lets work harder for our country. 

    • http://profile.yahoo.com/465CURGZINDNOU5T3QJVWI7LIM Michiko

      I like the economy stories of the Philippines.

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


  • Obama due in Seoul as North Korea nuclear test fears grow
  • Hold departure order out vs Corona, Singson
  • Malaysia to release MH370 report–PM
  • Man found dead in Quezon City, alleged victim of summary execution–report
  • Aquino to lead Air Force turnover rites
  • Sports

  • Michael Phelps loses to Lochte in comeback meet
  • 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
  • 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

  • China welcomes PH apology
  • 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
  • Marketplace