91-day T-bill rate falls to 0.712%

The yield on the 91-day treasury bills continued to decline, settling at a low 0.712 percent or a decrease of 3.3 basis points during Monday’s auction by the Bureau of the Treasury.

However, Monday’s result for the benchmark bills was 6.2 basis points higher compared to the prevailing—at auction time—0.65-percent average for done deals at the Philippine Exchange and Dealing Corp. trading floor.

The yield on the six-month bills fell by 39.5 basis points to 1.05 percent while the rate for the yearlong securities plunged by 55.6 basis points to 1.35 percent.

In the secondary market, prevailing rates for the 182-day bills were 2.5 basis points higher at 1.075 percent, and for the 364-day paper, 19.5 basis points higher at 1.545 percent.

The Treasury raised a total of P7.5 billion as planned. Investors tendered a total of P24.6 billion, or more than thrice the total offering.

National Treasurer Roberto B. Tan said in an interview that the auction committee continued to see the effects of the country’s strong economic fundamentals on the auction.

Tenders for the 91-day bills reached P3.97 billion, or almost four times the P1 billion on offer.

Bids for the 182-day securities totaled P10.82 billion, or more than four times the P2.5 billion being sold, while those for the 364-day securities reached P9.8 billion, more than twice the P4 billion on auction.

The Treasury has set a rate-setting auction for P30 billion worth of 25-year retail treasury bonds (RTBs) on October 9.

Deputy Treasurer Eduardo S. Mendiola said this meant that the auction for five-year regular bonds originally scheduled for the same date would be cancelled to give way to the latest RTBs.