T-bill rates continue to fall as investors seek safe haven

Treasury bills rates further slid on Monday, allowing the Bureau of the Treasury to sell P24 billion, or a fifth more than it offered, as investors sought a save haven for their money amid the COVID-19 pandemic.

The Treasury awarded P7 billion—more than the P5-billion offering—in the benchmark 91-day debt paper at an average rate of 2.09 percent, down from 2.269 percent last week.It sold another P7 billion in 182-day treasury bills—also exceeding the P5-billion offer—at 2.193 percent, down from 2.374 percent previously.

The P10 billion in 364-day IOUs fetched an annual rate of 2.653 percent, down from 2.761 percent.

Across the three tenors, tenders totaled P103.8 billion, making the auction more than five times oversubscribed compared with the P20-billion total offering.

“Strong reception to T-bill auction at much lower rates reflected the liquid tone of market as an aftermath of supportive actions of the BSP (Bangko Sentral ng Pilipinas),” said National Treasurer Rosalia de Leon, referring to the BSP’s recent cuts in key interest rates and bank reserves to release more liquidity into the financial system.

“Flight to safety continues,” De Leon added, as government securities were being considered by most investors as a safer bet with or without the COVID-19 crisis. —Ben O. de Vera INQ