BTr raises P 14.6B from T-bills; rates continue to decline

The national government raised P14.6 billion out of the planned P15 billion from the issuance of Treasury bills, at yields lower than the prevailing rates on the secondary market.

On Monday, the Bureau of Treasury (BTR) said they made a full award of the government’s 91-day and 364-day T-bills, raising P10 billion out the debt paper ahead of the Bangko Sentral ng Pilipinas’ (BSP) policy meeting on Thursday.

In contrast, the Treasury partially awarded its latest offering of 182-day T-bills during the day’s auction, raising the remaining P4.6 billion.

Monday’s auction saw rates capped at 4.230 percent, 5.298 percent and 4.949 percent, respectively.

“Except for 182-day [T-bills], [the] auction committee made full award as rates were lower than the comparable secondary [market] levels,” National Treasurer Rosalia de Leon said when sought for comment.

In a separate advisory, the BTr said the auction for these government securities was 2.1 times oversubscribed, attracting P32.2 billion in total tenders.

Back on Feb. 6, the national government raised P15 billion as planned with mixed results on the cost of Treasury bills compared with the previous auction, but all rates were also lower than done deals on the secondary market.

The Monetary Board will meet on Thursday this week, with expectations of an increase of 50 basis points as a way to temper the 14-year high inflation recorded in January.

Inflation in the country accelerated to 8.7 percent in January, from 8.1 percent in December 2022, driven by faster increases in housing rentals, electricity and water rates as well as in the prices of vegetables, milk and eggs, and fruits and nuts.

The central bank last raised rates in December 2022, bringing the policy rate to 5.5 percent. —Alden M. Monzon INQ