91-day, 182-day T-bill rates down, 364-day up

91-day, 182-day T-bill rates down, 364-day up

MANILA – The interest rates of the short-term Treasury bills (T-bills) declined Monday but the rate of the one-year paper ended the auction flat.

The rate of the 91-day T-bill slipped to 1.019 percent from 1.024 percent during the auction last Nov. 9.

The Bureau of the Treasury (BTr) initially offered this tenor for PHP5 billion but the auction committee accepted twice the original plan for non-competitive bids thus, full award reached PHP7 billion.

Total tenders amounted to PHP24.631 billion.

Average rate of the 182-day paper went down to 1.443 percent from last week’s 1.453 percent.

This was fully awarded for PHP5 billion after tenders amounted to PHP22.246 billion.

The rate of the 364-day paper, on the other hand, was flat at 1.745 percent relative to last week’s rate.

The BTr offered this tenor for PHP10 billion and the auction committee made a full award.

Tenders amounted to PHP33.53 billion.

National Treasurer Rosalia de Leon said results of the auction continues to show strong demand for government-issued debt instruments.

“Hefty liquidity prevails with (the) magnetic appeal of short tenors,” she told journalists in a Viber message.

Asked for updates on the ongoing offering for Premyo Bond 2, she said: “Doing well.”

The BTr launched the offering for the one-year Premyo Bond 2 last Nov. 11. Offer period will run until Dec. 11, 2020.

The second offering for this debt paper has a yield of 1.25 percent.

Minimum investment is PHP500 while maximum placement is PHP10 million.

Aside from government-owned Land Bank of the Philippines (Landbank) and Development Bank of the Philippines (DBP), investors can avail of this debt paper through China Bank Capital, BDO, PNB Capital, First Metro Investment Corporation (FMIC), and Union Bank of the Philippines (Unionbank) as well as through the digital-only Overseas Filipino Bank (OFBank), which operates through a mobile app, and the mobile app Bonds.PH. (PNA)

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