35-day T-bill rate slid to new low amid strong demand

MANILA, Philippines — The rate for the 35-day T-bill slid to a new low on Tuesday as investors seeking a safe haven snapped up the shortest tenor of government securities being issued by the Bureau of the Treasury.

The average rate for the P15 billion in five-week debt paper that the Treasury fully awarded fell to 1.157 percent from 1.684 percent when these were previously offered in June.

The Treasury did not sell 35-day IOUs in July as it instead sold three-year retail treasury bonds (RTB) until Aug. 7, Friday.

National Treasurer Rosalia V. de Leon said it was the lowest rate for the come-backing 35-day T-bills, which the Treasury started to offer since April at the height of the COVID-19 lockdown.

Prior to April, 35-day treasury bills were last offered in 2004.

Tuesday’s auction attracted P31.7 billion in bids, making it over twice oversubscribed.

De Leon said investors were parking liquidity in government securities, which were considered less-risky investments.

Last Monday, the Treasury sold an additional P3.03 billion in 364-day T-bills at 1.749 percent via its tap facility.

The 11 government securities eligible dealers (GSEDs)-market makers tendered the same amount, which the Treasury all awarded.

De Leon also said the Treasury was “working on” a repeat of the “premyo” bonds it offered last year.