MANILA, Philippines – Treasury bill (T-bill) rates tumbled to historic lows across the board yesterday as jittery investors gobbled up risk-free government debt papers amid fears of another global recession.
As such, the government successfully sold P12.6 billion worth of T-bills, above the original programmed debt sale of P9 billion as investors swamped yesterday’s auction.
The Bureau of the Treasury (BTr) sold P2.8 billion worth of the 91-day T-bill, or P800 million more than the programmed sale of P2 billion.
Investors tendered a total of P12.570 billion for the 91-day paper, which fetched an average rate of 0.438 percent or 54.1 basis points lower than the previous rate of 0.979 percent.
Similarly, the government sold P4.2 billion worth of the 182-day paper, also above the programmed debt sale of P3 billion.
The paper fetched an average rate of 0.682 percent or 31.8 basis points lower than the previous rate of 1 percent.
For this paper, investors tendered a total of P14.550 billion.
The 364-day paper, meanwhile, fetched an average rate of 0.944 percent, also lower by 55.6 basis points compared to the previous rate of 1.5 percent.
National Treasurer Roberto Tan attributed the positive auction results to the high level of liquidity in the financial system and to “good economic fundamentals.”“Liquidity is still very deep,” Tan told reporters after the auction.
Inflation hit 4.6 percent in July based on 2000 prices but the Bangko Sentral ng Pilipinas (BSP) expects consumer prices to have moderated in August.
The BSP expects inflation rate to have hit anywhere from 3.9 percent to 4.8 percent in August.
The National Statistics Office is scheduled to release today the inflation rate in September.
Tan said investors also expect monetary authorities to keep rates steady on Thursday.
“They’re anticipating neutral stance from the BSP,” Tan said.
The BSP’s policy rates are currently at 4.5 percent for the overnight borrowing rate and 6.5 percent for the overnight lending rate.
Analysts said the BSP is expected to keep rates steady on its next policy rate-setting meeting following the lower-than-expected economic growth rate of 3.4 percent in the second quarter of the year. –Iris C. Gonzales (The Philippine Star)
World Day for Safety and Health at Work
“Safety and health at work every day!”
Invoke Article 33 of the ILO constitution
against the military junta in Myanmar to carry out the 2021 ILO Commission of Inquiry recommendations against serious violations of Forced Labour and Freedom of Association protocols.
Accept National Unity Government
(NUG) of Myanmar.
Reject Military!
#WearMask #WashHands #Distancing #TakePicturesVideos
Monthly Observances:
March – Women’s Role in History Month
April – Month of Planet Earth
Weekly Observances:
Last Week of March: Protection and Gender Fair Treatment of the Girl Child Week
Last Week of April – World Immunization Week
Daily Observances:
Mar 25 – International Day of Remembrance of the Victims of Slavery and the Transallantic Slave Trade
Mar 27– Earth Hour
Apr 21 – Civil Service Day
Apr 22 – World Earth Day
Apr 28 – World Day for Safety and Health at Work
