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U.S. Treasuries correction prod higher T-bill rates

Joshua Lao

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Rates for the Bureau of Treasury’s (BTr) Treasury bills or T-bills moved higher across the board, reversing the downward yield trend in the previous weeks.

Still, the BTr decided to award its T-bills in full, raising its full P20 billion offer as demand remained robust, with total bids reaching P50 billion.

National Treasurer Rosalia de Leon attributed the higher rates to the recent correction on United States Treasuries, as such went up amid bright prospects for President Joe Biden’s stimulus.

Further, the Treasury chief said that the latest Retail Treasury Bond (RTB) issue is not siphoning off liquidity in the market as their T-bill is on a different part of the curve.

“RTB is in a different segment of the curve. Some are holding back (or on a) wait and see (mode). (Investors) may place in TDF (term deposit facility) in the meantime,” De Leon explained.

Rates for both the 91- and 182-day tenors stood 0.875 and 1.067 percent, respectively, a slight three and 2.1 basis point incline from last week’s 0.845 and 1.046 percent.

Likewise, yield for the 364-day benchmark went up by 11.1 basis points to 1.527 percent from only 1.416 percent in the same comparable period.

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