MANILA – Treasury bills (T-bills) were partially awarded across-the-board on Monday as rates posted upticks.
The average rate of the 91-day paper rose to 1.305 percent, the 182-day to 1.458 percent, and the 364-day to 1.734 percent.
These were at 0.899 percent, 1.157 percent, and 1.568 percent for the three-month, six-month, and one-year papers during the auction on February 21, the last time the debt papers were fully awarded.
The Bureau of the Treasury (BTr) offered the debt instruments for PHP5 billion each for all tenors and all were oversubscribed.
However, the auction committee awarded PHP3.037 billion worth of three-month paper, PHP3 billion worth of six-month paper, and PHP3.1 billion worth of one-year paper.
“Rates continue to move up in tandem with (a) surge in oil and commodities prices and as markets priced in liftoff in Fed rates,” National Treasurer Rosalia de Leon told journalists in a Viber message.
De Leon was referring to expectations that the Federal Reserve will hike its key rates starting this month as inflation continues to accelerate.
These expectations made investors risk-averse and resulted in the jump in yields they submitted during the T-bills and Treasury bond (T-bond) auctions in recent weeks.
This development hampered the government to raise funds through debt paper issuance.
Asked if this is a factor for the partial award during the T-bills auction, De Leon said: “award(s) were benchmarked against current market levels.” (PNA)