91-day T-bill rate rises to 1.022% | Inquirer Business

91-day T-bill rate rises to 1.022%

By: - Reporter / @bendeveraINQ
/ 04:06 AM December 15, 2020

The Bureau of the Treasury on Monday raised P20 billion from its last offering for 2020 despite higher yields for the three- and six-month debt paper.

The Treasury fully awarded P5 billion in the benchmark 91-day IOUs at an average rate of 1.022 percent, up from 1.015 percent last week.

It also sold all P5 billion in 182-day bills at 1.4 percent, inching up from 1.399 percent during the previous auction.

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The P10 billion in 364-day securities fetched an annual rate of 1.686 percent, down from 1.695 percent previously.

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In a statement, the Treasury said the average rates for all three tenors were below yields in the secondary market.

National Treasurer Rosalia de Leon said the “minimal movement” in rates came on the back of market expectations that the Bangko Sentral ng Pilipinas would keep the policy rate steady at a record-low of 2 percent during Thursday’s Monetary Board meeting.

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Investors tendered a total of P76 billion, making the auction 3.8 times oversubscribed.

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“Liquidity is bountiful with more than adequate bid cover across tenors,” De Leon said.

The Treasury will offer on Dec. 15 the P30 billion in reissued 10-year bonds with a remaining life of six years and four months—its final domestic fundraising for the year. INQ

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TAGS: Bureau of the Treasury, Business, National Treasurer Rosalia de Leon, T-bill

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