Bureau of Treasury fully awards T-bills at slightly higher rates

By Anna Leah Gonzales

May 27, 2024, 3:40 pm

MANILA – The Bureau of the Treasury (BTr) fully awarded bids for Treasury bills (T-bills) during Monday's auction.

The 91-, 182-, and 364-day T-bills fetched average rates of 5.719 percent, 5.886 percent, and 6.043 percent, respectively, slightly higher than last week's average rate.

Last week, the average rates of 91-, 182-, and 364-day T-bills was at 5.712 percent, 5.864 percent, and 6.007 percent, respectively.

"Treasury bill average auction yields corrected slightly higher similar to the slight healthy upward week-on-week correction in most comparable short-term PHP BVAL (Bloomberg Valuation Service) yields after consistent cautious signals from most officials and from the Fed minutes recently that reduced the odds of Fed rate cut," Rizal Commercial Banking Corporation chief economist Michael Ricafort said.

"T-bill average auction yields also corrected higher after the U.S. dollar/peso exchange rate lingered among 1.5-year highs or since November 2022 at slightly above 58 levels recently that could lead to some increase in the prices of imported products such as oil, among many others, and could lead to some pick up in overall inflation," he said.

The auction was more than 2.5 times oversubscribed, attracting PHP38.3 billion in total tenders.

The BTr raised the full program of PHP15.0 billion for the auction. (PNA)