Yields on benchmark Treasury bills rise

MANILA -The average yields on Treasury bills rose across the board on Monday amid mixed results in the weekly auction of short-term government securities.

The government again raised P12.9 billion out of the P15-billion offer amid weaker appetite for T-bills.

The average rate on the benchmark 91-day Treasury bills rose by 10.3 basis points (bps) to 5.698 percent from 5.595 percent previously.

Also, the average yield on the 182-day T-bills went up by 5.5 bps to 6.023 percent from 5.968 percent.

Moreover, the average rate on the 364-day T-bills increased by 9.6 bps to 6.215 percent from 6.119 percent.

“The auction was 1.8 times oversubscribed, attracting P27.6 billion in total tenders,” the Bureau of the Treasury said in a statement.

In comparison, the previous auction held on Sept 25 was 2.7 times oversubscribed, attracting P40.2 billion in total tenders. Similarly, average yields rose across the board last week.

Meanwhile the Bloomberg Valuation Service (BVAL), the yield on the three month bill was 0.7 bps higher at 5.705 percent.

Cost of gov’t borrowings

On the other hand, the yield on the six-month bill was four bps lower at 5.983 percent, and that on the 12-month bill was two bps lower at 6.215 percent.

The cost of short-term borrowing for the government has been rising after hawkish signals from the Bangko Sentral ng Pilipinas (BSP) as well as the United States Federal Reserve.

BSP Governor Eli Remolona Jr. said earlier that the central bank was considering a possible hike in November, which might not be the last one.

Remolona also said that, with about eight weeks until the next policy meeting of the Monetary Board on Nov. 16, the BSP has “a little bit of a scope” for an off-cycle adjustment before that.