Yield of 91-day T-bill eases to 0.198%

MANILA, Philippines - The 91-day Treasury bill (T-bill) rate eased to 0.198 percent yesterday from 0.200 percent in a Nov. 26 debt sale. The benchmark T-bill rate earlier fell to a record low of 0.15 percent last November 12.

The government sold P6.378 billion worth of 91, 183 and 364-day Treasury bills (T-bills) out of a planned debt sale of P7.5 billion.

The rates were steady during yesterday’s auction, the last for the year, ahead of monetary authorities’ meeting on Thursday. The Bangko Sentral ng Pilipinas (BSP) is expected to keep interest rates steady given the stronger-than-expected growth in the third quarter of the year of 7.1 percent and the low inflation environment.

Investors tendered a total of P3.365 billion for this paper, out of the programmed debt sale of P1 billion.

The average rate of the 183-day debt paper fell to 0.520 percent from 0.527 percent as total tenders reached P3.378 billion.

The government settled for a partial award of P1.378 billion.

Had the government opted for a full award, the average rate of the 183-day paper would have risen to 0.727 percent.

The yield on the 364-day debt paper declined to 0.606 percent from 0.549 percent previously. Total tenders for this paper reached P5.7 billion, higher than the programmed sale of P4 billion.

National Treasurer Rosalia de Leon attributed the positive auction results to sustained confidence on economic management and” better things to come for the Philippines.”

“Hopefully very low inflation environment will continue,” she also said.

This developed as Deputy Treasurer Eduardo Mendiola said the Treasury is studying if it can increase the size of Treasury bills and bonds on offer per auction next year on the back of the high level of liquidity in the local market.

He said the Treasury may reduce the frequency of debt sale.