Connect with us

Hi, what are you looking for?

Economy

Gov’t hikes award of T-bills as rates drop

THE GOVERNMENT on Monday hiked its award of Treasury bills (T-bills) amid a sustained decline in rates on the back of strong liquidity.

The Bureau of the Treasury (BTr) raised P22 billion via its offer of T-bills on Monday, higher than its P20-billion program, as it accepted more bids from the non-competitive sector for the six-month papers.

The offering was almost four times oversubscribed, with tenders reaching P86.715 billion.

The Treasury also opened its facility to raise another P5 billion via the one-year securities.

The BTr borrowed P5 billion as planned via the 91-day T-bills out of total tenders worth P21.45 billion. The average rate of the three-month papers stayed below the one-percent level, going down by one basis point (bp) to 0.977% from 0.987% last week.

Meanwhile, it awarded P7 billion worth of 182-day T-bills, higher than the programmed P5 billion, as the Treasury doubled the accepted non-competitive bids to P4 billion after bids for the tenor reached P22.22 billion. The six-month instruments fetched an average rate of 1.36%, down 0.9 bp from 1.369% previously.

Lastly, the Treasury made a full P10-billion award of the 364-day securities on offer on Monday as tenders hit P43.045 billion. The one-year papers were quoted at an average rate of 1.605%, down 0.9 bp from the previous rate of 1.614%.

National Treasurer Rosalia V. de Leon attributed the continued decline in T-bill rates to robust liquidity in the market and strong appetite for short-term papers.

“Rates trending down with abundant liquidity. Preference is on the front end of the curve,” Ms. De Leon told reporters via Viber after the auction on Monday.

A bond trader said “the result was as expected, with the rates moving sideways.”

“The yields declined on continued strong demand on the short tenor due to strong market liquidity,” the trader said by phone.

The BTr plans to borrow P140 billion from the local debt market this month: P80 billion via weekly auctions of T-bills and P60 billion from fortnightly Treasury bond offerings.

The government is looking to raise P3 trillion this year from domestic and external lenders to help fund its budget deficit seen to hit 8.9% of gross domestic product. — B.M. Laforga

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

People walk inside the Marikina Public Market, July 28. — PHILIPPINE STAR/ MICHAEL VARCAS By Kyle Aristophere T. Atienza and Jenina P. Ibañez, Reporters...

Economy

By Kyle Aristophere T. Atienza and Beatrice M. Laforga, Reporters THE LAST TWO packages under the comprehensive tax reform program, as well as a...

Economy

THE BUREAU of the Treasury (BTr) has set a P200-billion borrowing program for August as it expects sustained demand for government securities. The BTr’s...

Economy

By Beatrice M. Laforga, Reporter THE Bureau of Internal Revenue (BIR) suspended a regulation that would have increased the corporate income tax for nonprofit...

Economy

THE World Bank (WB) and the Philippine government recently signed an agreement for the $280-million (P14-billion) additional financing for a rural development program that...

Economy

CEBU Landmasters, Inc. (CLI) is venturing into resort development as the listed Visayas-Mindanao property company disclosed on Wednesday a P2.5-billion project that will beef...

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Investing

As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...

Economy

US President Joseph R. Biden, Jr., will rely on ally countries to supply the bulk of the metals needed to build electric vehicles and focus on...

Economy

THE Securities and Exchange Commission (SEC) has warned the public from investing or to stop any investment in a group named Maxxprofit Computer Trading...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.



Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!