BTr resorts to partial T-bill awards

MANILA  -The Philippine government again resorted to partial awards of Treasury bills across the board, raising only P10.572 billion out of the P15-billion offer, to keep yields in range with secondary market rates.

This was the second week in a row of partial awards across the three tenors, and the fourth week in a row of across-the-board rate increases. On Monday, the average rate on the benchmark 91-day T-bills rose by 31.9 basis points (bps) to 5.869 percent from 5.55 percent last week.

In the auction held April 24, the committee led by the Bureau of the Treasury raised P2.607 billion out of the P5-billion offer on 91-day T-bills.

Also, the committee awarded only P3.236 billion out of P5 billion of the offered 182-day T-bills.

The new average yield was 18.1 bps higher at 5.993 compared to the previous 5.812 percent.

Meanwhile, the government raised P4.729 billion out of P5 billion from 364-day T-bills.

The cost of borrowing increased by 13.6 bps to 6.209 percent from 6.073 percent.

Had the committee gone with a full award, the average rate on the benchmark bills would have respectively risen by 52.1 bps to 6.071 percent.

Likewise, the average rate on the 182-day bills would have gone up by 28.7 bps to 6.099 percent, and on the 364-day bills by 15.2 bps to 6.225 percent.

Further, the latest average rates were also higher across the board compared to prevailing rates for corresponding done deals at the secondary market.

Ronnel W. Domingo