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T-bill rates sustain upturn

Liquidity continues to overflow.

Joshua Lao

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The Bureau of Treasury’s (BTr) Treasury bills or T-bills continue to sustain improvement in terms of yields as rates continue to decline across tenors.

As such, the BTr decided to award in full its IOU, surpassing even its initial P20 billion offering, after doubling its acceptance on non-competitive bids for both the 91- and 182-day benchmarks.

National Treasurer Rosalia de Leon said the continued strong demand on their T-bills prompted the agency to reopen its tap facility for the 364-day tenor for another P5 billion.

“Liquidity continues to overflow. Market sees a spike in prices as temporary with supply constraints and inflation dialing back to the middle of the target next year,” De Leon said.

Rates for the 91-day and 182-day IOU stood at 0.845 and 1.046 percent, respectively, a 0.1 and 4.8 basis point improvement from the posted 0.46 and 1.094 percent week-ago.

Likewise, yield for the 364-day benchmark fetched an average of 1.416 percent, three basis points better than the recorded 1.446 percent in the same comparable period.

The BTr was able to raise P24 billion over its initial P20 billion program after attracting a hefty P88.6 billion worth of bids, which oversubscribed the original amount by more than four times.

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