T-bill rates rose across-the-board on potential interest rate hikes overseas – BTr

The Bureau of the Treasury on Monday partially awarded the T-bills it offered to cap yields that rose across-the-board.

While the Treasury awarded all the P6 billion in 91-day IOUs, it sold P4.131 billion in 182-day debt paper out of the P5-billion offering.

The Treasury also accepted just P2.37 billion for the P4 billion in 364-day government securities it programmed to auction off.

In all, the Treasury raised P12.5 billion, short of the P15-billion total offering.

Tenders totaled P24.5 billion, making the auction oversubscribed.

However, “average T-bill rates went up with the 91-day settling at 2.126 percent while the 182- and 364-day were capped at 2.496 percent and 2.926 percent, respectively,” the Treasury noted in a statement.

To compare, the previous treasury bills auction two weeks ago was fully awarded at rates of 2.084 percent for the 91-day, 2.421 percent for the 182-day and 2.875 percent for the 364-day.

Deputy Treasury Erwin D. Sta Ana told reporters after the auction that the rates increased as the market reacted to pronouncements of the central banks and monetary authorities in the European Union, Japan as well as the United States of possible interest rate hikes.