MANILA -- The rates of Philippine Treasury bills (T-bills) ended mixed Monday but demand for the longer-tenor debt paper remains strong.
The average rate of the bellwether 90-day paper, shortened by a day due to the Chinese New Year holiday on February 5, rose to 5.534 percent from 5.418 percent during the auction last January 21.
It was offered for PHP6 billion but investors only submitted PHP5.807 billion worth of bids. The auction committee awarded PHP4.397 billion worth.
National Treasurer Rosalia de Leon attributed the lower demand to investors' preference for debt instruments with longer terms, as well as banks’ desire to recover their costs in line with the hike in their time deposits yields.
“So now they are trying also to make sure that the yields where they invest will be able to make up for the higher cost of fund of the bank,” she told journalists after the auction.
On the other hand, the rate of the 182-day T-bill went down to 5.892 percent from 5.914 percent last week.
Investors submitted a total of PHP11.699 billion worth of bids, more than the PHP6 billion offering. The auction committee awarded in full.
The same thing happened to the 364-day paper after its average rate fell to 5.946 percent from 5.969 percent during the previous auction.
It was offered for PHP8 billion and was likewise fully awarded. Total bids were more than twice and reached PHP19.747 billion.
With a high demand for the one-year paper, the Bureau of the Treasury offered the same tenor through the tap facility to allow more investors to take advantage of this government issuance. (PNA)
