Wed. May 25th, 2022

By Joann Villanueva 

MANILA – Demand for government securities remains high, resulting in the full award of Philippines’ Treasury bills (T-bills) and the drop of its rates across-the-board Tuesday.

Average rate of the 91-day T-bill fell to 2.058 percent from 2.090 percent during the auction last May 18.

The Bureau of the Treasury (BTr) offered this tenor for PHP5 billion and tenders reached PHP19.9 billion.

Average rate of the 182-day paper declined to 2.114 percent from the previous auction’s 2.193 percent.

This tenor was offered for PHP5 billion and bids amounted to PHP20.6 billion.

Rate of the 364-day paper went down to 2.508 percent from 2.653 percent last week.

Bids for this week’s auction totaled to PHP53.88 billion, nearly four times the PHP14-billion offer.

BTR opened its tap facility after the auction to offer PHP10 billion worth of one-year paper.

National Treasurer Rosalia de Leon said rates outturn in this week’s T-bill auction is also lower than those in the secondary market.

“Sentiment supported by ample liquidity and possible BSP (Bangko Sentral ng Pilipinas) action to trim RRR (reserve requirement ratio) again,” she said in a Viber message to journalists after the auction.

Monetary authorities are expected to announce another RRR reduction since BSP Governor Benjamin Diokno has implemented only half of the 400 basis points cut that the policy-making Monetary Board (MB) has authorized him to do this year.

The first RRR reduction this year was made last March as part of the central bank’s measures to ensure adequate domestic liquidity in the system and help buoy the domestic economy from the impact of the global pandemic.

Diokno, however, said they are not in a hurry to cut the RRR again soon as they continue to monitor the impact of the earlier decisions on this and because liquidity remains high. (IA/PNA)

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