T-bill rates down across the board

MANILA, Philippines — T-bill rates fell across the board as investors seeking a safe haven flocked Monday’s auction ahead of the government’s retail treasury bond (RTB) sale.

The Bureau of the Treasury awarded P5 billion in the benchmark 91-day T-bills at an average rate of 1.587 percent, down from 1.649 percent last week.

It also sold P5 billion in 182-day treasury bills at 1.687 percent, down from 1.75 percent during the previous auction.

The P10-billion in 364-day IOUs fetched an annual rate of 1.782 percent, down from 1.855 percent previously.

“Rates dropped because investors prefer safe havens and shorter tenor [of] government securities,” National Treasurer Rosalia V. de Leon explained.

Across the three tenors, tenders totaled P93.9 billion, making the auction over four times oversubscribed the fully awarded P20-billion offering.

The drop in T-bill rates may reflect yield for the five-year RTBs to be offered starting Thursday, but de Leon said these securities remain to be a safer investment, with “very minimal risk since government-issued.”

“When investing in RTBs, you invest in your future and support the government towards a quick recovery. That is more rewarding,” de Leon said.

JPV