PARTIAL AWARD. The average rates of the Treasury bills (T-bills) rise anew on Monday (June 27, 2022), which makes the Bureau of the Treasury's (BTr) auction committee to partially award the six-month paper. National Treasurer Rosalia de Leon traced the jump in T-bill rates to the latest 25 basis points increase in the Bangko Sentral ng Pilipinas (BSP) policy rates. (Photo from BTr)
MANILA – The rates of Treasury bills (T-bills) rose on Monday, resulting in the partial award of the six-month paper.
The average rate of the 91-day securities increased to 1.855 percent, the 182-day to 2.400 percent, and the 364-day to 2.630 percent.
These were at 1.759 percent, 2.132 percent, and 2.454 percent for the three-month, six-month, and one-year papers during the auction last June 20.
The Bureau of the Treasury (BTr) offered all tenors for PHP5 billion each and fully awarded both the three-month and one-year papers. The six-month securities was awarded for PHP3.95 billion.
“(We) saw rates climbed up from (the) aftermath of MB (Monetary Board) 25 basis points rate lift to cool down inflation,” National Treasurer Rosalia de Leon told journalists in a Viber message on Monday.
She was referring to the second rate increase in the Bangko Sentral ng Pilipinas’ (BSP) policy rate last June 23, which followed the same jump last May.
Both rate hike decisions were aimed at taming the accelerating domestic inflation rate, which surpassed the government’s 2-4 percent target band for the second consecutive month last May when it rose to 5.4 percent from 4.9 percent in the fourth month this year.
De Leon said “markets provided cushion as they see policy rates continue to be on a hiking cycle to let steam out of inflation pressures.”
“Both BSP and Fed (Federal Reserve) are expected to unleash another 25 bps in August and a follow up 75 bps for Fed,” she said.
Asked about the impact of higher interest rates on the government’s borrowings for the second half of the year, De Leon said “we see good demand even with long tenors as seen in the 10-year offer last week.”
“But of course, (the) upward trajectory for rates induced the expected rate increases to bring inflation back to target range,” she added. (PNA)
