T-bill yields ease slightly

The Bureau of the Treasury sold P12.97 billion out of the P15 billion in bills offered Monday as it capped the rising yield for the longest tenor.

The Treasury awarded all P5 billion in benchmark 91-day IOUs at an average rate of 3.437 percent, down 1.4 basis points from 3.451 percent last week. Bids for the three-month treasury bills reached P16.01 billion.

The Treasury also fully awarded the P4 billion in 182-day debt paper at 3.879 percent, down 5.5 basis points from 3.934 percent during the previous auction. Tenders for the six-month government securities amounted to P14.06 billion.

National Treasurer Rosalia V. de Leon told reporters after the auction that the 91- and 182-day securities had healthy demand as the market was comfortable with the shorter end of the curve.

As for the P6 billion in 364-day bills, the Treasury accepted only P3.97 billion worth of bids even as investors tendered a total of P8.79 billion.

The rate for the one-year treasury bills was capped at 4.297 percent, up 7.1 basis points from 4.226 percent previously.

Moving forward, De Leon said that the market “will continue to look for fresh leads as the cautiousness disappeared” after the Bangko Sentral ng Pilipinas raised interest rates two weeks ago amid rising inflation.

For the three tenors, bids totaled P38.86 billion, more than double the total offering. —BEN O. DE VERA