T-bills demand strong despite MECQ risks to economy | Inquirer Business
Close  
ALMOST FOUR TIMES OVERSUBSCRIBED

T-bills demand strong despite MECQ risks to economy

By: - Reporter / @bendeveraINQ
/ 04:09 AM August 04, 2020

Investors snapped up P20 billion in treasury bills at rates that fell across-the-board on Monday as oozing domestic liquidity outweighed any negative sentiment on the return of Metro Manila and neighboring provinces to a more stringent COVID-19 lockdown.

The Bureau of the Treasury sold P5 billion in the benchmark 91-day T-bills at 1.221 percent, down from 1.335 percent last week.

ADVERTISEMENT

It awarded another P5 billion in 182-day debt paper at an average rate of 1.454 percent, down from 1.605 percent during the previous auction.

The P10 billion in 364-day IOUs fetched an annual rate of 1.749 percent, down from 1.758 percent previously.

FEATURED STORIES

In all, the three tenors attracted tenders totaling P76.4 billion, making the auction almost four times oversubscribed.

National Treasurer Rosalia V. de Leon said the Treasury opened its tap facility window to sell another P5 billion of the one-year securities.

De Leon said President Duterte’s decision to place Metro Manila, Bulacan, Cavite, Laguna and Rizal under modified enhanced community quarantine (MECQ) on Aug. 4 to 18 amid rising COVID-19 cases had no impact on demand for government securities.

Surplus liquidity and preference for safe-haven assets resulted in overwhelming subscription and continued fall in rates, she said. INQ

Subscribe to Inquirer Business Newsletter
Read Next
Don't miss out on the latest news and information.

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: Business, economy, T-bills
For feedback, complaints, or inquiries, contact us.


© Copyright 1997-2020 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.