T-bill rates surge ahead of inflation data release
P20B RAISED

T-bill rates surge ahead of inflation data release

Gov't back to fiscal deficit in May

Bureau of the Treasury

Treasury bill rates surged on Monday ahead of the release of June inflation data later this week.

The Bureau of the Treasury (BTr) said it was able to borrow its targeted P20 billion from T-bills with total bids reaching P43 billion, exceeding the original size of the issuance by 2.2 times.

Article continues after this advertisement

READ: Gov’t raises P15 billion from T-bill auction

FEATURED STORIES

The 91-day T-bill fetched an average rate of 5.686 percent, more expensive than the 5.666 percent from last week’s auction. The yield on the 182-day debt notes went up to 5.959 percent from 5.930 percent, while the rate for the 364-day paper rose to 6.050 percent from 6.031 percent, previously.

‘Steady to higher’

Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said yields were higher amid expectations of “steady to higher” inflation fueled by the continued weakening of the peso and the effects of El Niño climate phenomenon.

Article continues after this advertisement

The local currency closed at 58.65 per dollar yesterday, weakening from its 58.61 finish on Friday, still at 20-month highs.

Article continues after this advertisement

Borrowing programThe Philippine Statistics Authority, meanwhile, is set to release the June inflation rate on July 5.

Article continues after this advertisement

The Marcos administration wants to raise P260 billion from T-bills and P370 billion via Treasury bonds in the third quarter. In July, the BTr plans to borrow a total of P215 billion, of which P100 billion is from T-bills and P115 billion from T-bonds.

The government ramped up its borrowing program by 7.7 percent to P630 billion for the third quarter, higher from the previous P585-billion program, as it remained committed to increasing its investments in infrastructure projects. INQ

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Subscribe to our daily newsletter

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

TAGS: Bureau of Treasury, Business, T-bills

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Subscribe to our newsletter!

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

© Copyright 1997-2024 INQUIRER.net | All Rights Reserved

This is an information message

We use cookies to enhance your experience. By continuing, you agree to our use of cookies. Learn more here.