National Treasurer Rosalia de Leon
MANILA – The Bureau of the Treasury (BTr) fully awarded all three tenors of Treasury bills (T-bills) Monday.
National Treasurer Rosalia de Leon said the rise of interest rates is within-expected range.
Rate of the 91-day debt paper rose to 3.413 percent from 3.024 percent when this tenor was awarded last March 9.
BTr offered this tenor for PHP10 billion and tenders reached PHP15.95 billion.
Average rate of the 182-day paper rose to 3.553 percent from 3.398 percent last March 16.
The auction committee awarded the PHP5-billion offer after tenders reached PHP10.915 billion.
Rate of the 364-day paper averaged at 3.845 percent, up from the 3.557 percent during the auction last March 16.
Tenders totaled to PHP10.81 billion, higher than the PHP5-billion offer.
De Leon, in a Viber message to journalists after the Facebook live feed of the auction, attributed their decision to fully award the debt papers to the rates being “within internal estimates and secondary levels.”
She said investors continue to remain cautious as the duration of the coronavirus lockdown is uncertain.
“But at the same time, (they) have to deploy liquidity from (the) RRR (reserve requirement ratio) cut,” she added.
De Leon was referring to the higher liquidity as a result of the 200-basis-point cut in the banks’ RRR since March 30, which was targeted to ensure additional funds that banks can lend to help fuel economic activity despite the negative economic impact of the coronavirus disease (Covid-19). (PNA)
