T-bill rates decline on strong demand

T-bill rates decline on strong demand

MANILA – The rates of the Philippines’ treasury bills (T-bills) declined across-the-board Monday due to strong domestic liquidity.

The average rate of the 91-day paper slipped to 0.984 percent, the 182-day to 1.348 percent, and the 364-day to 1.582 percent.

These were at 0.977 percent, 1.360 percent, and 1.605 percent for the three-, six-, and 12-month paper during the auction last Jan. 11.

The Bureau of the Treasury (BTr) offered the 91-day T-bill for PHP5 billion, and the auction committee made a full award after bids totaled to PHP17.76 billion.

Total award for the 182-day paper reached PHP7 billion, PHP2 billion higher than the initial offering after the auction committee doubled the award for the non-competitive bids to PHP4 billion.

Tenders amounted to PHP24.296 billion.

The auction committee also fully awarded the PHP10-billion offer for the one-year paper after bids reached PHP45.055 billion.

In a Viber message to journalists Monday, National Treasurer Rosalia de Leon said the auction committee decided to open the tap facility to offer the one-year paper given the large demand during the auction.

“Liquidity remains strong particularly on the front-end with assuring statements from (Bangko Sentral ng Pilipinas) Gov. (Benjamin) Diokno to continue (having) supportive policies for economic rebound as well as Fed’s (Chairman Jerome) Powell(‘s) message to keep rates low,” she added. (PNA)

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