MANILA – Rates of the Philippines’ 182-day and 364-day Treasury bills (T-bills) declined Monday as domestic liquidity remains high and investors continue to expect another cut in the Bangko Sentral ng Pilipinas’ (BSP) key rates.
Average rate of the six-month paper slipped to 3.312 percent from 3.324 percent during the auction same day last week, while the one-year paper from 3.684 percent to 3.588 percent.
The rate of the 91-day paper rose to 3.024 percent from 3.013 percent in the previous auction.
National Treasurer Rosalia de Leon told journalists after the auction that demand for the securities continue to be strong, with total bids amounting to PHP53 billion, nearly thrice the PHP20-billion offer.
The three-month paper was offered for PHP6 billion, and was fully awarded after bids amounted to PHP10.15 billion.
Tenders for the six-month debt instrument reached PHP12.193 billion, more than twice the PHP6-billion offer. The auction committee made a full award.
Bids for the one-year T-bill reached PHP30.68 billion, more than three times the PHP8-billion offer. This tenor was also fully awarded.
Aside from rate cut expectations and strong domestic liquidity, de Leon said drop in global oil prices also played a part on investors’ strong demand for the T-bills.
Rates of these papers in the secondary market on Monday morning are higher with the three-month at 3.058 percent; six-month, 3.367 percent; and one-year, 3.719 percent. (PNA)