While rates for the Bureau of Treasury’s (BTr) Treasury bills (T-bills) manifested an increase across the board, the agency opted to award such in full, similar to its previous week’s decision.
National Treasurer Rosalia de Leon explained that current T-bill rates are moving along the correction witnessed in United States (US) Treasuries in addition to the elevated inflation level seen week-ago.
“Full award for all tenors. No tap. Hangover from elevated inflation with rates moving alongside (the) uptrend of US Treasuries,” De Leon said.
Rates for both the 91- and 182-day T-bill stood 1.139 and 1.316 percent, respectively, a 9.9 and nine basis point incline from last week’s 1.040 and 1.226 percent accordingly.
Likewise, yield for the 364-day benchmark fetched an average of 1.852 percent, a 17.2 basis point uptrend from the recorded 1.527 percent in the same comparable period.
The BTr was able to raise its full P20 billion offer after attracting a hefty P44 billion worth of bids, oversubscribing the original amount by more than twice.
Rates could still rise
In a separate development, Ricky Maddatu, head of fixed income investments at the Pru Life UK Investments said that IOU rates could still go higher given current economic conditions.
“Local yields gradually rise on higher inflation expectations, rise of global interest rates,” Maddatu said during a virtual press conference on Monday.
Still, he explained that the gradual unwinding of the Bangko Sentral ng Pilipinas’ key interest rates will likely come into play as the economy recovers.