Wed. Aug 4th, 2021

MANILA – The rates of the Philippines’ Treasury bill (T-bill) declined Monday due to strong liquidity in the economy.

The average rate of the 91-day paper went down to 2.090 percent, the 182-day bill to 2.193 percent, and the 364-day T-bill to 2.653 percent.

These were 2.269 percent, 2.374 percent, and 2.761 percent for the three-month, six-month, and one-year paper during the auction last May 11.

The Bureau of the Treasury (BTr) also upsized the award for the three- and six-month paper to PHP7 billion from the original offer of PHP5 billion due to strong demand.

Bids for the shortest-dated note reached PHP29.334 billion, while it totaled to PHP33.7 billion for the six-month tenor.

The auction committee made a full award of PHP10 billion for the one-year paper and even opened the tap facility to offer this tenor for PHP5 billion after tenders amounted to PHP40.771 billion.

National Treasurer Rosalia de Leon told journalists in a Viber message that “flight to safety continues” thus, the robust amount of bids during the auction.

“Strong reception to T-bill auction at much lower rates reflecting liquid tone of market aftermath of supportive actions of the BSP,” she said referring to the numerous policy measures by the Bangko Sentral ng Pilipinas (BSP) aimed to address the economic impact of the community quarantines put in place to contain the spread of coronavirus disease 2019 (Covid-19).

Among these measures include the total of 125 basis points cut in the central bank’s key policy rates, the 200-basis-point reduction in big banks’ reserve requirement ratio (RRR), and the leeway given to banks’ recognizing their loans to micro, small and medium enterprises (MSMEs) as part of their RRR. (IA/PNA)

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