MANILA, Philippines--THE YIELD ON THE BENCHMARK 91-DAY TREAsury bills went up by 9.3 basis points to an average of 3.887 percent as interest rates rose across the board in this year?s last auction for government securities.
Interest on the 182-day bills went up 0.5 basis point while that for the 364-day issue rose 6.3 basis points.
The six-month debt paper now costs the government an average of 4.095 percent while the year-long issue costs 4.562 percent.
National Treasurer Roberto B. Tan said yesterday?s increases were insignificant and that the results were lower than the rates for done deals in the secondary market.
Tan said the auction was good in that all offerings were oversubscribed, showing much liquidity remaining in the market, especially with P6.9 billion worth of treasury bills maturing this week.
He said this might be due to investors? expectations that the Bangko Sentral ng Pilipinas (BSP) would keep its policy rates unchanged.
Currently, the BSP?s lending rate is at an all-time low of 6 percent while the borrowing rate is pegged at 4 percent.
Tan said that what kept investors? appetite strong was that there might not be any new substantial debt paper issuances for this month.
While other government and private borrowers are seeking permission to be able to float their debt paper, Tan said there might not be any more issuances until the year ends.
In yesterday?s auction, investors tendered a total of P15.14 billion or more than twice the total offer of P6.5 billion.
Buyers bid a total of P2.27 billion or more than twice the Treasury?s offer of P1 billion for the 91-day bills.
They also tendered a total of P5.84 billion or almost thrice the P2-billion offer for the 182-day securities.
Lenders offered to buy a total of P7.03 billion or more than twice the P3.5 billion worth of 364-day bills being sold.
Tan also pointed out that there were $300 million in fresh official development assistance packages coming in this month.
He said the amount represented program loans and were meant for budget support, thus lessening the government?s need to borrow locally through more treasury bill sales.
