T-bill rates inch up across the board

The Bureau of the Treasury on Monday sold all P20 billion in bills it offered at higher rates across the board despite robust demand.

The Treasury awarded P5 billion in the benchmark 91-day debt paper at an average rate of 1.156 percent, up from 1.15 percent last week.

It also sold P5 billion in 182-day bills at 1.615 percent, up from 1.589 percent previously.

The P10 billion in 364-day securities fetched an annual rate of 1.85 percent, up from 1.807 percent two weeks ago as the Treasury rejected bids for the longest tenor during the previous auction.

National Treasurer Rosalia V. de Leon attributed the higher yields to “expectations that the Bangko Sentral ng Pilipinas will keep policy rates steady for the remainder of the year.”

De Leon nonetheless noted that demand remained strong with oversubscription in all tenor buckets.

Tenders across the three maturities totaled P72.8 billion, making the auction more than 3.6 times oversubscribed.

Meanwhile, De Leon reminded small investors who bought premyo bonds in December last year that the third quarterly raffle draw would be held on Sept. 25 at 2 p.m.

She also disclosed that the Treasury would launch another premyo bond sale before December this year offering “bigger and more exciting” prizes. —BEN O. DE VERA INQ