Short-term T-bill rates up slightly

The Bureau of the Treasury on Monday sold P15 billion in bills on the back of robust demand even as it was on wait-and-see if it would still be a good time to issue dollar bonds before the end of the year.

The Treasury awarded all P4 billion in the benchmark 91-day IOUs it offered at an average of 5.394 percent, up from 5.295 percent previously.

It also sold P5 billion in 182-day debt paper at 6.305 percent, up from 6.294 percent last week.

Also, P6 billion in 364-day government securities were awarded at an annual rate of 6.507 percent, down from 6.55 percent in the previous auction.

In a statement, the Treasury noted the “healthy market demand” as investors tendered a total of P35.6 billion across the three tenors, making the auction more than twice oversubscribed.

National Treasurer Rosalia V. de Leon told reporters after the auction that the demand reflected easing inflation pressures, which would allow the Bangko Sentral ng Pilipinas to pause on monetary tightening.

It also helped that the US Federal Reserve was likewise seen pausing on its rate increases as its rates were close to neutral, she added.

As for the planned global bond sale, De Leon said there was “still a window” to issue dollar-denominated securities before this year-end.

“We want to watch the market, including the ongoing issuance of Indonesia,” she said. —BEN O. DE VERA