T-bill rates are being dragged down by strong demand
Given the plenty of liquidity in the domestic economy, Treasury bill rates fell across the board on Monday.
The 91-day rate fell to 1.118 percent, the 182-day rate to 1.372 percent, and the 364-day rate to 1.577 percent.
During the auction on June 7, these were 1.176 percent, 1.422 percent, and 1.649 percent for three-month, six-month, and one-year paper, respectively.
Because of the overwhelming amount of offers, National Treasurer Rosalia de Leon stated the auction committee increased the non-competitive bids given.
Each tenor was tendered for PHP5 billion by the Bureau of the Treasury (BTr), but each was given PHP7 billion.
Total bids for the 91-day paper were PHP28.229 billion, while the 182-day T-bill received PHP34.037 billion and the 364-day paper received PHP38.03 billion.
“Liquidity was seeking for outlets as the maturity of RTBs (retail treasury bonds) strengthened sufficient cash onshore seeking for yield,” de Leon added.