Bureau of Treasury fully awards T-bills

MANILA, Philippines — The Bureau of the Treasury (BTr) fully awarded bids for Treasury bills (T-bills) during an auction on Monday, October 14.

The 91-, 182-, and 364-day T-bills fetched average rates of 5.444 percent, 5.668 percent, and 5.623 percent, respectively.

Last week, the average rates of the 91-,183-, and 364-day T-bills settled at 5.414 percent, 5.474 percent, and 5.540 percent.

READ: Treasury bill rates rise as less dovish US Fed seen

“T-bill average auction yields again corrected higher for three second straight week, now unusually higher than the comparable PHP BVAL (Bloomberg Valuation Service) yields, amid weaker peso exchange rate versus the U.S. dollar,” Rizal Commercial Banking Corporation chief economist Michael Ricafort said in a Viber message.

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The comparative BVAL rates were at 5.043 percent for the three-month tenor, 5.447 percent for the six-month tenor, and 5.617 percent for the one-year tenor.

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Ricafort said the higher T-bill average auction yield was also amid the increase in global crude oil prices due to heightened tensions in the Middle East following Iran’s second missile attack on Israel.

READ: Treasury bill rates rise across the board; investors temper dovish US Fed bets

“The markets are awaiting for Israel’s possible response,” he said.

“T-bill auction yields also corrected higher again on reduced odds of Fed rate cuts priced in by the markets.”

The auction was 2.6 times oversubscribed, attracting P51.7 billion in total tenders.

With the full award, the BTr raised the full program of P20 billion for the auction. (PNA)

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