Treasury 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 bills at an average rate of 1.587 percent, down from 1.649 percent last week.
It also sold P5 billion in 182-day securities 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 more than four times oversubscribed. The Treasury fully awarded the P20-billion offering.
The drop in treasury bill rates may reflect the yield for the five-year RTBs to be offered starting Thursday, but De Leon said these securities remained to be a safer investment with “very minimal risk since (these are) government-issued.”
“When investing in RTBs, you invest in your future and support the government toward a quick recovery. That is more rewarding,” De Leon said. —Ben O. de Vera INQ