Strong demand continues pulling down T-bill rates
T-bills rates continued to fall across-the-board on Monday as government securities remain appealing to investors while the economy awaits an injection of fiscal stimulus to fight the COVID-19 pandemic.
The Bureau of the Treasury awarded all P20 billion in Treasury bills while it offered to sell another P5 billion in one-year debt papers through tap facility window, National Treasurer Rosalia V. de Leon said.
The Treasury sold P5 billion in the benchmark 91-day T-bills at an average rate of 1.335 percent, down from 1.454 percent last week.
It also awarded P5 billion in 182-day treasury bills at 1.605 percent, down from 1.625 percent previously.
The 364-day securities fetched an annual rate of 1.758 percent, down from 1.77 percent, allowing the Treasury to sell all P10-billion offering.
Across the three tenors or maturity periods, tenders reached P64.3 billion, making the auction over 3.2 times oversubscribed.
De Leon said the strong demand for short tenors pushed T-bill rates lower while “investors await the highlights of President Rodrigo R. Duterte’s State of the Nation Address (Sona) to address the health crisis and unveil the recovery plan.”
The government’s domestic borrowings, through the auction of treasury bills and bonds, have been raising money to finance the fight against the health and socioeconomic crises caused by COVID-19.
