MANILA -- The rates of Philippine Treasury bills (T-bills) went up again Monday but National Treasurer Rosalia de Leon is not worried, saying the hikes are within expectations.
The rate of the 91-day facility rose by 0.70 basis points to 3.225 percent from last week’s 3.218 percent. It was offered for PHP4 billion and banks tendered a total of PHP6.225 billion. The auction committee made a full award.
The average rate of the six-month paper inched up by 3.1 percent to 4.1 percent from last week’s 4.07 percent. Banks submitted PHP11.601-billion worth of bids, higher than the PHP5 billion offering, which is also what was awarded.
The rate of the 364-day facility ticked up to 4.899 percent, 2-percent higher than the 4.879 percent last week. The Bureau of the Treasury awarded PHP6 billion based on offering. Total tenders reached PHP9.635 billion. “(Increase of rates are) within our own assessments. In terms of the increase, it’s like just one to three basis points,” de Leon told reporters after the auction.
The National Treasurer said banks remain liquid because of recent securities redemption by the bureau, amounting to more than PHP80 billion. “At the same time, coming from the 100 basis points hike of the MB (Monetary Board), so I suppose there’s already some comfort from the market about the current rates,” she said referring to the total increase to date of the Bangko Sentral ng Pilipinas’ (BSP) key rates.
Meanwhile, de Leon said there are no specifics yet on the amount or timeline of the planned US dollar-denominated bond issuance of the Philippines, which will be the second for the year if this pushes through. She noted, however, that they are “encouraged” by the recent USD600-million issuance of unsecured fixed rate notes by the Ayala-led Bank of the Philippine Islands (BPI), the largest so far for a Philippine bank in the offshore debt market.
On the other hand, she said market players may be a bit cautious right now due to the currency crisis in Turkey and Argentina. De Leon explained that there is also a need to consider the rate decisions of the Federal Reserve following statements from Fed officials, as well as the impact of the US trade agreements with other countries. (PNA)
