Close  
  • share this

T-bill rates rise on possible RTB sale

By: - Reporter / @bendeveraINQ
/ 05:27 PM February 11, 2019

MANILA, Philippines – Bureau of the Treasury sold all P20 billion in T-bills it offered Monday amid robust demand even as rates rose across-the-board ahead of a possible retail treasury bond (RTB) offering this year.

The Treasury awarded P6 billion in 91-day IOUs at 5.55 percent, up from 5.484 percent last week.

ADVERTISEMENT

It also sold P6 billon in 182-day debt paper at 5.933 percent, up from 5.867 percent during the previous auction.

All P8 billion in 364-day treasury bills were also awarded at 5.983 percent, up from 5.924 percent previously.

FEATURED STORIES

In all, investors tendered P30.32 billion across the three tenors, making the auction 1.5 times oversubscribed.

National Treasurer Rosalia V. de Leon told reporters after the auction that the strong demand reflected market response to recent dovish statements from the US Federal Reserve as well as the Bangko Sentral ng Pilipinas’ decision last week to keep interest rates steady.

De Leon attributed the higher yields of short-dated securities to news last week of another RTB sale in the offing.

“That’s anticipated by the market given that we have a P70-billion maturity on Feb. 19. But for now, given that we still have a very strong cash position, that’s something that we still have to confirm whether to move ahead,” De Leon said.

She said budgetary requirements for 2019 as well as near-term interest rate environment would allow the Treasury to determine if it would push through with an RTB sale.

“And, of course, the demand. We have to consider the tenor that investors will find more attractive to be able to buy the RTBs,” she said, adding that the tenor would likely be “at the belly of the curve.”

The Duterte administration during its first two years in office already sold RTBs to small investors four times.

ADVERTISEMENT

In June last year, the government issued P121.8 billion in three-year RTBs at 4.875 percent.

In December 2017, the Treasury raised P255.4 billion from RTBs, the largest issuance to date, selling five-year debt paper at 4.625 percent.

In April 2017, the Treasury sold P181 billion in three-year RTBs at a coupon of 4.25 percent.

In September 2016, the Treasury issued P100 billion in 10-year RTBs at a 3.5-percent yield. /kga

Read Next
LATEST STORIES
MOST READ
Don't miss out on the latest news and information.
View comments

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: Bureau of Treasury, Business, business news, local news, News, Philippine news updates, RTB, T-no;;
For feedback, complaints, or inquiries, contact us.
newsinfo

Finders of cocaine in Quezon receive 1 sack rice

February 22, 2019 12:15 PM

newsinfo

Bayan Muna to SSS: Bare data on uncollected premiums

February 22, 2019 12:14 PM

newsinfo

Bam Aquino: Kris supports Otso Diretso bets ‘100%’

February 22, 2019 12:01 PM

newsinfo

2 gunrunning suspects killed in Manila shootout

February 22, 2019 12:00 PM




© Copyright 1997-2019 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.