Gov’t raises P13.6B from T-bills sale

MANILA  -Interest rates on Treasury bills went up across the board but the national government raised only P13.6 billion out of the planned P15 billion as the auction committee ended a four-week run of full awards.

The average rate on the benchmark 91-day T-bills rose by 9.5 basis points (bps) to 5.922 percent from 5.827 percent last week.

In the auction held June 13, the committee awarded P3.6 billion of the three-month bills.

Had the committee led by the Bureau of the Treasury gone with a full award, the average rate would have jumped by 25.4 bps to 6.081 percent.

On the other hand, the committee awarded fully the P5-billion offer of 182-day T-bills and the 363-day T-bills.

The new average yield for the six-month bills was 8.7 bps higher at 5.978 compared to the previous 5.891 percent.

The average rate for the year-long bills went up by 8.2 bps to 6.062 percent from 5.98 percent.

“The auction was 1.3 times oversubscribed, attracting P20 billion in total tenders,” the committee said in a statement.

Meanwhile, average yields were also higher across the board compared to prevailing rates at the secondary market.

At the Bloomberg Valuation Service (BVAL) , the new average for the 91-day T-bills was lower by 5.9 bps at 5.863 percent

Also, the new average for the six-month bills was 7.7 bps lower while that for the yearlong bills was 11.4 bps lower.

The BVAL rate for the 182-day debt paper was pegged at 5.901 percent and for the 363-day debt paper at 5.948 percent.

National Treasurer Rosalia de Leon earlier said interest rates on government securities were expected to decline after Fitch Ratings revised to stable from negative its outlook on the Philippine government’s credit rating.

Fitch Ratings said in a statement the revision of the outlook reflected their assessment that the Philippines’ economic policy framework remains sound and in line with other sovereigns that are rated “BBB.”