THE national government borrowed P15 billion from its tender of Treasury bills (T-bills), snapping a two-week partial award by the Bureau of the Treasury (BTr) as yields fell below or near secondary market rates.
The Treasury made a full award across all the three tenors of T-bills (91-day, 182-day and 364-day) at Tuesday’s auction.
This the first time in three weeks and the second time this month that the Treasury was able to raise its full intended amount for T-bills tender.
The state’s T-bills auctions have been hounded by rising yields due to a confluence of events that include higher US treasury yields, rising world oil prices, and movements in the policy rates both locally and in the US.
The average yields on Tuesday’s auction were: 5.671 percent for the 91-day tenor, 5.986 percent for 182-day debt paper, and 6.334 for the 364-day government security.
The yields were below or within the vicinity of their secondary market counterparts: 5.765 percent for the 91-day, 6.0 percent for the 182-day and 6.329 percent for the 364-day.
Despite the yields moving closer to their secondary market levels, they remained higher on a weekly basis. The yields last week were: 5.671 percent for 91-day tenor, 5.986 percent for 182-day tenor and 6.334 percent for the 364-day tenor.
Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the higher T-bills yields reflected movements in the US market as well as the recent pause by the Bangko Sentral ng Pilipinas (BSP) on its policy rates.
“Mostly higher T-bill auction yields after new highs in nearly 16 years (since October 2007) for the benchmark US Treasury yield, now at 4.34 percent,” Ricafort told the BusinessMirror.
“Also after signals of hawkish pause from local monetary officials, or readiness to hike rates, if needed. As well as signals of no cut on banks’ [reserve requirement ratio] for now,” he added.
Ricafort noted that “offsetting positive factors” in the coming tenders would be signs of appreciation by the Philippine peso against the greenback and correction in the global crude oil prices.
The Treasury said the T-bills auction remained oversubscribed as total bids reached P43 billion, about 2.9 times of the programmed amount.
Image credits: Walter Eric Sy / Dreamstime.com
High yields sought for T-bills after BSP stance
Source: News Paper Radio
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