T-bills oversubscribed, rates rise

24-Feb-2021 Intellasia | PhilStar | 6:56 AM Print This Post

The government awarded in full the short-dated securities offered yesterday even as rates rose slightly across the board in reaction to movements in US Treasury yields.

The Bureau of the Treasury raised P20 billion yesterday from total tenders of P50 billion, making the offer more than twice oversubscribed.

Average rate for the benchmark 91-day T-bills rose to 0.875 percent from 0.845 percent last week, while the rate for the 182-day debt paper rose to 1.067 percent from 1.046 percent the previous week.

Yield for the 364-day debt paper, meanwhile, rose to an average of 1.527 percent, up from 1.416 percent last week.

Raised as programmed were P5 billion each from 91-day and 182-day T-bill offers, and P10 billion from the 364-day offer.

National Treasurer Rosalia de Leon said the moderate rise in rates reflected a correction in relation to rising US Treasury yields.

“(The) adjustment is (a) correction as US Treasuries moved up with bright prospects for Biden stimulus,” she said.

De Leon also said the Treasury also opened the tap facility window to sell an additional P5 billion in T-bills with a one-year tenor to all 11 government securities eligible dealers to mop up liquidity in the market.

The tap facility allows government securities eligible dealers to access securities after the initial primary auction.



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