August 16, 2021

This week’s T-bill rates haven’t moved much

On Monday, the rates of 91-day and 364-day Treasury notes (T-bills) remained unchanged, while the rate of 182-day paper remained unchanged, both of which were in accordance with secondary market levels.

The 91-day paper’s average rate was 1.066 percent, the 182-day papers was 1.407 percent, and the 364-day papers were 1.617 percent.

During the auction on Aug. 9, these were 1.064 percent, 1.407 percent, and 1.625 percent for three-month, six-month, and one-year papers, respectively.

All tenors were tendered for PHP5 billion apiece by the Bureau of the Treasury (BTr), and the auction committee granted them all.

Tenders for the three-month paper totaled PHP17.47 billion, while the 182-day T-bill brought in PHP18.48 billion, and the one-year paper brought in PHP17.325 billion.

The rise in T-bill rates, according to National Treasurer Rosalia de Leon, is related to the monetary authorities’ average inflation estimate of 4.1 percent for this year, up from 4 percent previously owing to changes in global commodity prices.

This inflation estimate is somewhat higher than the government’s goal range of 2% to 4% through 2023, but monetary officials anticipate inflation to be within the target range beginning next year.

“Strong liquidity is also supporting this (change in T-bill rates),” de Leon said.

The auction committee did not provide the debt papers over the tap facility window due to the high number of bids received for the T-bills.

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