MANILA – The average rate of the Philippines’ 35-day Treasury bill (T-bill) increased Tuesday but demand remained strong.

The rate of the debt paper rose to 2.101 percent from 2.065 percent during the auction last June 2.

“Banks want to be within inflation,” National Treasurer Rosalia de Leon told journalists in a Viber message after the auction on the reason for the rate uptick.

The Bureau of the Treasury (BTr) offered the debt paper for PHP15 billion and the auction committee made a full award.

Bids reached PHP22.815 billion.

The domestic inflation rate further decelerated to 2.1 percent last May from the previous month’s 2.2 percent, bringing the year-to-date average to 2.5 percent.

The government has set the inflation target for this year until 2022 at 2 percent to 4 percent.

Meanwhile, the Department of Finance and the BTr will hold the first-ever draw for the Premyo Bonds at 1 p.m. on Thursday.

The event, which will be streamed live through the BTr Facebook page, http://www.facebook.com/TreasuryPH, and website, http://www.treasury.gov.ph, will cover the supposed quarterly draw for the first quarter, which was delayed due to the implementation of the enhanced community quarantine, and the second quarter.

Bondholders are qualified for the quarterly prize of PH20,000 (100 winners), PHP100,000 (15 winners), and PHP1 million (one winner), including a residential unit from Lessandra by Vista Land (first quarter) or Pro-Friends (second quarter).

Winners will be drawn using the bondholders’ electronic Rewards Number (eRN).

Winners of the PHP20,000 and PHP100,000 cash prizes will be informed via electronic mail (e-mail) and their prizes will automatically be credited to their settlement accounts, while the winners for the grand prizes will be notified through registered mail and will be issued a manager’s check. (PNA)