91-day Treasury-bills up to 3.987%

MANILA, Philippines – The government successfully sold P8.5 billion worth of 91, 182, and 364-day Treasury bills (T-bills) yesterday although there was an uptick in the rate of the shorter-term paper because of the lack of supply in 91-day T-bills.

The average rate of the 91-day T-bill went up by 4.1 basis points to 3.987 percent from 3.946 percent previously.

Investors tendered a total of P3.920 billion, allowing the government to sell the P1.5 billion it offered to the market. Bids ranged from 3.950 percent to 4.050 percent.

For the 182-day T-bills, the average rate stood at 4.295 percent from 4.322 percent previously or a decline of 2.7 basis points. For this tenor, investors submitted total bids of P7.670 billion, allowing the government to make a full award of the P3 billion that it offered to investors.

The 324-day T-bill, meanwhile, fetched an average rate of 4.459 percent, shedding 3.1 basis points from 4.490 percent previously.

The government sold P3.5 billion worth of the paper as total tenders reached P9.150 billion almost thrice the offer. Bids ranged from 4.415 percent to 4.475 percent.

National Treasurer Roberto Tan said investors are parking their funds in longer-term securities as they await for more signals on the direction of the country’s interest rate environment.

“They’re more comfortable investing in longer-term securities,” Tan told reporters after the auction.

He said that there are expectations that the US Federal Reserve will be coming out with a neutral stance, which would sustain the low interest rate environment worldwide.

There are also expectations that inflation “is going to be benign, at least in the near future,” Tan added. “So a lot of investors are looking for longer-term investments,” Tan said. –Iris C. Gonzales (The Philippine Star)